Citigroup Inc (NYSE:C) shares could hit $6 a share say analysts at Barclays Capital.
The upgraded share target price is 22.95% higher than yesterday's close of 4.88.
The upgrade should be no surprise as analysts mull yesterday's surprise announcement that the banking giant had returned to profit.
Citigroup revealed that it earned $4.4 billion last quarter - its best showing in almost three years.
Citi not only raked in more profit than its two closest competitors, it also generated a higher return on equity, Breakingviews says.
Citigroup Inc's 12 percent return was more than double Bank of America’s meager showing — and at first blush puts crisis-winner JPMorgan’s 8 percent to shame, the publication suggests.
Unlike last year, there are no one-offs like big asset sales to explain the discrepancies. And all three banks reported bumper trading revenue and took fewer credit hits as loan delinquencies fell.
Citi did have some extra help, Breakingviews concedes.
The banks all-in tax rate was just 17.3 percent, compared with 26 percent at JPMorgan and 27 percent at Bank of America, although even calculated with a higher tax rate, Citi’s return on equity would still have been 10 percent.
Also, unlike Bank of America, CitiGroup had no preferred stock dividends to pay, after having converted all its preferred shares into common shares last year.