Jump to content

US bank earnings and price forecasts: Citigroup Inc Q2 2022 results preview


Recommended Posts

Citigroup trades on valuation discount and dividend premium to its peers ahead of Q2 results.

CitigroupSource: Bloomberg
 
 Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Monday 11 July 2022 

When are the Citigroup results expected?

Citigroup is set to release second quarter results for the fiscal year 2022 (Q2 2022) on the 15th of July 2022.

What is ‘The Street’s’ expectation for the Q2 2022 results?

‘The Street’ expectations for the upcoming results are as follows:

- Revenue of $18.098 billion (+3.57% year-on-year - YoY)

- Earnings per share $1.69 (-35.89% YoY)

How to trade Citigroup into the results

RecommendationsSource: Refinitiv

 

Refinitiv data shows a consensus (27) of analyst ratings at ‘buy’ for Citigroup.

A mean of estimates suggest a long-term share price target of $60.17 for the company. The current share price trades at a 29% discount to this assumed long-term fair value (as of the 11th of July 2022).

Client sentimentSource: IG

 

 

IG sentiment data shows that 95% of clients with open positions on the share (as of the 11th of July 2022) expect the price to rise over the near-term, while 5% of these clients expect the price to fall.

Client sentimentSource: IG

 

The above table compares Citigroup against a peer average (which includes Goldman Sachs, Bank of America, Wells Fargo, JP Morgan and Morgan Stanley) in terms of dividend yield and price to earnings (PE) multiples.

Citigroup currently trades at a discount to its sector peers in terms of a historical and forward PE, as well as the S&P 500 benchmark index (at a PE of 28 times). The group’s dividend offering has been higher than its peers in aggregate.

Citigroup – technical view

Citigroup chartSource: ProRealTime

 

The long-term price trend for the share price of Citigroup remains down, evidenced by the price trading firmly below the 200-day simple moving average (blue line) and the red trendline on our chart.

The share is, however, moving out of oversold territory in the very near-term. The long-term trend takes precedence with support considered at 46 and 41.30 respectively.

A downside break (confirmed with a close) of the 46.00 level would call for further decline with 41.30 the initial target considered. Only if a rebound from oversold territory takes the price back above the major high at 54.00, would we reassess the merits of returning a long bias to trades on the company.

In summary

- Citigroup is set to release Q2 2022 results on the 15th of July 2022

- Q2 2022 are expected to show a YoY increase in revenue and large decline in earnings per share

- Long-term broker consensus suggests the share to currently be a ‘buy’, with a longer-term price target of $60.17

- IG clients with open positions on the share are predominantly long

- The long-term price trend for Citigroup is down

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Demo account: Please note that conditions on demo accounts may differ from real accounts. Some brokers may only provide overnight loans on real accounts and not on demo accounts.
    • Swap Rate: Check the swap rates for your open positions. Overnight loans are calculated based on the difference between the interest rates of a currency pair, and if the difference is small or negative, you will not receive a loan.
    • Civic (CVC) emerges as a game-changer in the realm of identity verification, offering a secure and decentralized solution for payment verification between "Identity Verifiers" and "Identity Requesters" within the Civic ecosystem. With its innovative approach and recent developments, Civic is making waves in the cryptocurrency market Payment Verification: Civic's primary use case lies in facilitating payment verification between parties within the Civic ecosystem. By leveraging blockchain technology, Civic provides a secure and transparent method for verifying identities and ensuring trust in transactions.  Integration with Solana Token Extensions: Civic's recent announcement on X revealed that Civic Pass is now integrated with Solana Token Extensions, further enhancing its utility and interoperability within the blockchain ecosystem. This integration opens up new possibilities for Civic's application and adoption.  Civic (CVC) is now listed on Bitget  and other CEX providing users with convenient access to trade and engage with the token. This listing further enhances Civic's visibility and liquidity, attracting new users and investors to the ecosystem. 
×
×
  • Create New...
us