Earlier today, shares of Citigroup (NYSE: C) poked through their all-time high of $55.21 per share, largely reacting to the upgrade of the shares to "buy" from "neutral" by Merrill Lynch analyst Guy Moszkowski. In his call note, Moszkowski wrote that the shares are still cheap, despite their recent spurt, for several reasons:
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greater anticipated revenue growth, due in part to a favorable bond market and to initiatives launched both in the U.S. and abroad
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new COO Bob Druskin, who will likely act quickly to address cost-management
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Citi's assurance that no new domestic acquisitions are planned (because, in Moszkowski's view, international acquisitions will likely pay off better)
Overall, Moszkowski believes that CEO Charles Prince's policies are effectively reversing some of the downward trends that led to several analyst downgrades earlier this year. It merits noting that Moszkowski was once a finance analyst at Citigroup's Smith Barney, so perhaps he knows what he's talking about.
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