Buy Citigroup now says Dick Bove
With the renewed commitment by the Treasury Department to divest of its stake in Citigroup (NYSE:C), and that action already being priced into the shares, Dick Bove says now is the time to buy Citigroup.
Bove has also raised his continually increasing target in the company from $7 to $8.50, and has upgraded the stock to a buy.
He doesn't think there will be a major upheaval from the sale of the shares by the Treasury because of the huge number of shares being sold on a daily basis, which should keep it from being overly diluted.
As far as the fundamentals go, Bove believes Citigroup can generate 70 cents a share in profits once the restructuring period is over.
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