C is seriously undervalued, as a government selloff in its holdings and promising restructuring plans have not been fully realized in its tangible book value. Dick Bove recently reiterated his "buy" rating on Citigroup stock, with a price target of $6.90 - I agree.
Just one example of the fact that the company's tangible book value is understated is Primerica. Approximately 60 percent of the company was spun off a month ago. The almost 40 percent that Citigroup still owns is now worth close to $700 million.
C's stock is reflecting the US government's sale of its holdings, and not the intrinsic value of the company. Oh, there's also the bank's plan to restructure CitiFinancial to make it more saleable.
In his note, Bove commended Chief Executive Vikram Pandit's leadership, saying he "has guided the transformation of this company from what was essentially a bankrupt entity to what is now likely to be one of the country's strongest banks."
long C
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