- Citigroup appears to be an intelligent value play in big banking, but looks could be deceiving.
- Low loan loss rates and higher-than-normal levels of interest-bearing deposits may have artificially propped up 2021 results.
- COVID-19 related government stimulus spending and money handouts by the Federal Reserve have boosted numbers, but may not be sustainable past this year.
- Weak trading momentum since the spring, and a rising short interest could be harbingers of future trouble.
For further details see:
Citigroup Remains A Neutral Pick, Despite A Low Valuation