Goldman Sachs has added Citigroup (C) to its “Conviction Sell” list. Analyst William Tanona has raised his loss expectations, from $0.25 per share to $0.75 per share, and is now forecasting that Citi will write down $9 billion in Q2:
We see multiple headwinds for Citigroup including additional write-downs, higher consumer provisions as a result of rapidly deteriorating consumer credit trends, and the potential for additional capital raises, dividend cuts, or asset sales.
Goldman also cut its rating on U.S. brokerages in general, from Attractive to Neutral. [“Attractive”? Oops.] According to Tanona, Citi’s dividend isn’t safe either:
Given the firm’s current level of earnings power, we do not believe the dividend is safe. We believe any additional capital raises will be in the form of common equity, dividend cuts and or additional asset sales.
Anyone have anything positive to say about Citigroup? Always darkest before dawn? (Wait, it was pitch black six months ago…)