Is March a good month for buying Citigroup shares?

Written by: Stanko Iliev
February 25, 2021
  • Wall Street analysts stay bullish on Citigroup
  • The first sign of the trend reversal could be if the price falls below the $60 support level
  • Wall Street's main indexes weakened this Thursday

Citigroup (NYSE: C) shares have advanced from $57 above $69 since the beginning of February, and the current price stands around $67. Wall Street is still bullish on Citigroup, and the stock price could advance soon above the $70 resistance if the U.S. stock market continues to trade in a bull market.

Fundamental analysis: Wall Street analysts stay bullish on Citigroup

Citigroup shares are advancing this February, and at the current stock price, this bank is fairly valued, in my opinion. Citigroup reported Q4 results in January; total revenue has decreased by 10.2% Y/Y to $16.5B while Q4 GAAP EPS was $2.08 (beats by $0.72).

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Citigroup declared a $0.51/share quarterly dividend, and according to the latest news, the credit card delinquency rate of 1.38% in January advanced from 1.36% in December. Many analysts agree that the current valuation gives the stock room to run, but the Federal Reserve politics raise some concerns.

Federal Reserve Chairman Jay Powell recently said that interest rates would remain low despite rising inflation, which is not good for the bank stocks. Bank stocks have been rallying, up more than 10% since the beginning of the year, but if the Fed keeps its asset management program as is, there is a concern that upside is limited.

Wall Street’s main indexes weakened this Thursday as the U.S. 10-year Treasury yield hit a one-year high and rose above the S&P 500 dividend yield.

“The market is starting to get a bit frothy, so investors are taking some gains off the growth areas of stocks, which had the biggest movements, and moving it to more conservative areas for higher yields in the bond market. The higher the yield on bonds, the more we see this push to move out of stocks,” said Jeffrey Carbone, managing partner at Cornerstone Wealth.

Despite this, Wall Street analysts stay bullish on Citigroup, and the consensus of Wall Street analysts is a price target of $77.5, representing a 15% increase above the current price. This bank’s fundamentals are very good, and Citigroup shares could deliver strong shareholder value for many years to come.

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Technical analysis: Citigroup shares are advancing this February

Citigroup shares are advancing this February, and the first sign of the trend reversal could be if the price falls below the $60 support level.

Data source: tradingview.com

The current support levels are $65 and $60, $ 70, $75, and $80 represent the resistance levels. If the price jumps above $70 resistance, it would be a signal to buy Citigroup shares, and the next target could be around $75.

On the other side, if the price falls below $60, it would be a firm “sell” signal, and the next target could be around $55.

Summary

Wall Street is still bullish on Citigroup, and the stock price could advance soon above the $70 resistance if the U.S. stock market continues to trade in a bull market. Citigroup shares are advancing this February, but if the price falls below $60 support, it would be a firm “sell” signal, and the next target could be around $55.