"We upgrade ... given above consensus EPS estimates, a better understanding of the important [Latin America] story, and a still-attractive valuation," Jefferies said in a note to investors. "We believe '19 will show better rev. growth, stable costs/credit, and [over $20 billion in] capital return."
Jefferies expects Citi will see improving revenue "growth in U.S. branded credit cards as customer mix improves and past headwinds abate." Jefferies also said Mexico's banking business will deliver better returns for Citi "after a few years of heavy investments."
"We recently met with Jane Fraser, CEO of Latin America," Jefferies said. "[In that region] the pace of investment spending growth should begin to bend, with platform upgrades helping efficiency, new digital branches/ATMs offering better self-service options, and more partnering with external investments/insurance providers,"
Citigroup shares rose fractionally in premarket trading from Thursday's close of $64.32 a share. Jefferies has a $73 price target on Citi's stock.
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