After declining in tandem, Citigroup (C) and Bank of America (BAC) have diverged this afternoon, with Citi up 13 cents, or 3%, at $4.03, and B of A down 54 cents, or 4%, at $13.44.
Seems the day after analysis of both firms’ Q2 earnings releases on Friday may be now shifting in Citi’s favor, thanks in large part to its being seen as more international than B of A, and more protected from U.S. regulatory changes.
That’s certainly the approach taken today by Barclays Capital analyst Jason Goldberg in reviewing both stocks. Basically, he likes Citi better as a stock pick at this time.
Reiterating an “Overweight” rating on Citi and a $6 price target, Goldberg notes Q2 was the second profitable quarter in a row for Citi, and he argues Citi is the “cheapest large-cap bank stock” on a price-to-book basis, writes Goldberg, trading at a 7% discount to tangible book value....MORE
Tuesday, July 20, 2010
"Citi, B of A Diverge: Barclays Favors Citi" (BAC; C)
From Barron's Stocks to Watch Today: