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Opinions Brooke Thackray
Citigroup Inc.CCOMMENTDec 19, 2017
Brooke ThackrayStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Citi trades at only 0.6x book value, cheapest among peers, but there may be something wrong with that. Trades at a low 10x PE. Last September, they announced a major restructuring, like cutting jobs and executive layers, and they already dropped many of their international businesses. Wall Street is excited by the many job cuts, but he thinks the growth is questionable. It's the only major bank expected to grow earnings in 2024 at 5.2%. He hopes they make a comeback, but will believe it when he sees it.
Likes the CEO, though the market didn't give her credit for 18 months when she started. Now, she's cutting unprofitable business and expenses. It's becoming lean and analysts are noticing it.
Jim Lebenthal
Happy about the news. It's gravy. The CEO finally addressed the low ROE by cutting costs, by cutting five layers of management. She also got rid of most international operations, which he agrees with. He likes her decisions. He'd like to see shares surge.
Jim LebenthalIt boasts the lowest PE among the big US banks and pays almost a 5% dividend. They're cutting costs and bringing in great executives. They're a contrarian bank, lagging its peers this year.
Brian BelskiHe just bought it. CITI just hired a gem to run their wealth management division (a former colleague of his). It's the top value name among American banks.
Brian BelskiThe large US banks are holding their own, far better than the regionals. Citi is one of the most geographically diverse banks around which offers safety. Still likes it. Pays a 4.4% dividend and trades around 6.5x PE. Trades at a big discount to book value.
Michael Sprung
Has done extremely well. They benefited from a number of different things, including rising rates in the states, but they are also well exposed heavily; more so that the other banks, to international markets, approximately 45% of their earnings. That’s good and bad. Last year in 2017 it actually outperformed at lot of the other banks. Seasonal periods for banks last until April. It’s performing well. From a fundamental perspective, though, US dollars tends to pick up in January. If we see stronger US dollars in January and February, you might see this bank underperform against the other banks because of its emerging markets exposure. Citigroup is fine. Just watch it and the US dollar as well.