Citigroup Inc (C) said earlier this week that it projected a net interest income growth of 3% to 4% for the full year. Previously, it had forecast a 4% growth.
The Wall Street bank also expects a drop in trading and investment banking fees during the third quarter.
Citigroup shares closed higher for a second consecutive trading session in New York on Tuesday. The stock edged up 0.28% ($0.19) to $68.98, after touching an intraday high at $70.00, or a price level not seen since August 1st ($71.09).
Shares of Citigroup Inc have risen 32.50% so far in 2019 compared with an 18.85% gain for the benchmark index, S&P 500 (SPX).
In 2018, Citigroup’s stock went down 30.04%, thus, it underperformed the S&P 500, which registered a 6.24% loss.
In a statement during the Barclays Financial Services Conference, Mark Mason, Citigroup’s Chief Financial Officer, noted that the flattening of the yield curve as well as expectations of more than one cut in the benchmark interest rate by the Federal Reserve Bank by the end of 2019 have been the main factors behind Citi’s more cautious lending outlook.
Analyst stock price forecast and recommendation
According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Citigroup Inc’s stock price, have a median target of $80.00, with a high estimate of $106.00 and a low estimate of $52.00. The median estimate represents a 15.98% upside compared to the closing price of $68.98 on September 10th.
The same media also reported that at least 18 out of 25 surveyed investment analysts had rated Citigroup Inc’s stock as “Buy”, while 2 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.
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