Out of the gate the stock is up 8 cents at $4.66.
Analysts at Sterne Agee slapped the buy button on Citi, with analyst Todd Hagerman initiating coverage. He cites some of the oft-cited rationales by devotees of Citi — international exposure, the wind-down of the Citi Holding’s portfolio, a solid balance sheet, a low valuation:
While management continues to work on its credibility gap with investors and discounted share price, our sense is that the risk/reward on the shares has greatly improved entering 2011. The recently announced reverse stock split, combined with an inexpensive valuation (trading at tangible book), will likely provide an additional catalyst with increased appeal to institutional investors....MORE