Citigroup Inc Shares Set For Further Gains
The last week has seen Citigroup shares reach a new three month high peaking at 52.53 on Wednesday.
The consensus among most analysts is that the shares will continue to rise in the near future; the median forecast for 23 analysts offering 12 months price targets is 57.00 while some forecast a high of around 68.00. As a result, a few analysts are recommending buying Citigroup shares in the short term as new highs are almost certain.
The rise in share price is down to Citigroup’s efforts to contain costs and improve operational efficiency. This year the company is expecting to make around $2.2 billion in annual savings and adjusted expenses were down 3% year over year in the second quarter of 2014.
However, some caution is required as Citigroup is showing no steady growth in revenues and it is having increasing problems with litigation. At the end of last month Citigroup was fined $1.85 million by the Financial Industry Regulatory Authority for not giving customers the best possible prices and for having deficient supervisory procedures. In addition to the fine Citigroup must compensate affected investors with $638,000 plus interest.