Citigroup share price may double by 2020

Citi Building Sign

Citigroup’s share price could double in the next four years as the lender simplifies its businesses and returns more capital to shareholders, Portales Partners analyst Charles Peabody said.

“Citi could be a $90 stock by 2020 given the kind of capital they’re going to retire,” Peabody said Monday in an interview on Bloomberg Television.

Bloomberg News reports that Citigroup and other large banks have built “massive amounts of capital” after selling businesses and assets to meet regulator demands in the wake of the financial crisis, Peabody said. Citigroup will be in a better position to return that surplus to shareholders after 2017, he said.

“Once we get past ‘17, you’re going to see a tremendous amount of capital returned by these money-center banks,” he said. “They’re going to add 4, maybe even 5 percentage points” to their earnings-per-share growth rate.

To access the complete Bloomberg News article hit the link below:

Citigroup Shares Seen Doubling by 2020 on Capital Returns

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