The rating helps investors apply an appropriate margin of safety to each stock.
The what, how, and why of our recent change to the rating methodology.
Stock undervalued as net interest income growth outlook improves.
We think the bank’s stock remains cheap, with higher rates boosting net interest income.
Credit conditions remain unchanged; stock undervalued with $41 fair value estimate.
Citigroup’s earnings are set to be quite messy for a while, and we think it is more important to ignore the noise and focus on core operations.
Credit outlook still not bad; Higher rates should drive exceptional net interest income growth.
A series of frequently asked questions about the Fed.
There were some mixed updates to current guidance, with net interest income now expected to grow faster.
The wide-moat bank's wealth-related fees are still growing, but not as fast as we expected.
Based on this quarter’s results, we do not plan to materially alter our current fair value estimate of $78 for the bank, and we view shares as undervalued.
Investment banking fees flat and the outlook doesn't look positive.
We're keeping our fair value estimate at $152 and see higher expenses today leading to a better competitive position tomorrow.
As interest rates rise, many U.S. bank stocks are fairly valued--but this work in progress remains a bargain, says Morningstar's analyst.
Citigroup is not pretty, but it's our top pick
In a mission to fight inflation, Wednesday's rate hike is likely the first of seven this year alone.
With inflation high, there's nothing holding the Fed back from multiple rate increases starting in March.
Our read on the 2022 guidance suggests slight disappointments within fees, expenses, and net interest income.
Investments will weigh on expenses in 2022, leading us to lower our expectations.
Here's what we're watching for during earnings season -- and our top picks in the industry today.
A strong job market and persistent inflation pressures mean that higher rates will be here sooner.
Higher inflation may be transitory, but watch the job market for Fed rate hike cues.
We're maintaining our fair value estimate and view the current valuation as undemanding.
We are increasing our fair value estimate for the wide-moat bank.
After updating our projections, we are increasing our fair value estimate for the bank.
The firm receives a $160 per share fair value estimate and no-moat rating.
It’s reasonable to expect tapering to start toward the end of 2021 or beginning of 2022.
We're maintaining our fair value estimate of $35 per share.
Wells remains our top pick among the traditional U.S. banks.
We are increasing our fair value estimate for the wide-moat firm.
Capital returns are coming back, but don't forget about valuations.
As all banks 'passed,' we expect sizable share repurchases to be forth coming, and dividend hikes are also on the table.
We expect to update the rate outlook in our banking models to incorporate rate hikes.
We expect the Fed to hold off on hikes until inflation is at or above 2%.
We're increasing our fair value estimate to $76 per share from $74.
With roughly flat net interest income compared with last quarter and higher fee income, revenue is generally holding up.
We're maintaining our fair value estimate of $52 per share.
We are increasing our fair value estimate for the wide-moat bank after an excellent first quarter.
But more dots move toward a rate hike--or hikes--in 2022 or 2023.
We think JPMorgan and Wells Fargo are worth more with less uncertainty now.
We still expect accommodative lean.
We are raising our fair value estimate for the wide-moat firm.
Narrow-moat Citigroup reported mixed fourth-quarter earnings, with EPS of $2.08 handily beating the Factset consensus estimate of $1.34 per share.
We don't plan on changing our $45 fair value estimate for the wide-moat bank.
The wide-moat bank beat our expectations for investment banking, trading, asset management, and mortgage fees.
We anticipate that the Federal Open Market Committee will be in a holding pattern for some time, with the meetings and releases likely to be relatively mundane for a while.
The undervalued bank has good management and a stable franchise.
We forecast that interest rates will stay near zero through 2024.
We’re hoping that fourth quarter results will show a bottom for net interest income, and that a gradual recovery in fees will continue for Wells. Regarding expenses, management said it will give more details on the next call. After updating our projections with the latest results, we are decreasing our fair value estimate to $45 per share from $46.
Despite uncertainty regarding economic outlook and future credit developments, we are maintaining our fair value estimate for the wide-moat firm.