Should I Work For Citigroup?

Granted my recent assessment of BCE was a little way off, even though I think “The Street” over reacted to the news…I’m still holding my shares.

On the other hand, I have been touting the Canadian Banks as great Dividend Growth stocks for quite a while now. According to the Globe and Mail, it looks like I have finally found someone who agrees with me.

Citigroup analysts, Shannon Cowherd has just released analysis on six Canadian banks rating three as buys and three as holds.

I wonder when my “consulting fee” will be arriving in the mail?

Here is the analysis:

Citigroup Global Markets Inc. has initiated coverage of the big six Canadian banks, rating three as “holds” and three as “buys.”

The three holds are Toronto-Dominion Bank, National Bank of Canada and Royal Bank of Canada and the three buys are Canadian Imperial Bank of Commerce, Bank of Nova Scotia and Bank of Montreal. The ratings vary significantly from consensus in some cases.

Citigroup analyst Shannon Cowherd gave CIBC a “buy-high risk” rating and a 12-month price target of $121. Ms. Cowherd said her rating reflects a view of the upside profit potential at CIBC, primarily driven by its cost-cutting initiative and the loan-loss coverage ratio. “We recognize the stock is up 38 per cent in seven months but feel the story is not over yet,” she said. The shares are currently trading at $101.78 on the Toronto Stock Exchange.

With Scotiabank (buy-medium risk), she noted that the shares are trading at a premium to the group, based on the forward price/earnings multiple. “We think this premium is warranted given the bank’s exposure to high-growth, albeit risky, markets and our estimated three-year CAGR [compound annual growth rate] of 6.6 per cent exceeds the group average,” Ms. Cowherd said. She expects Scotia shares, which are currently stand at $51.68, will rise over the next 12 months to $64.

More here


  1. Welcome to the land of the “Z” list blogger. It is a world that the big media companies look at for stories and then investigate those same stories on their own.

    Don’t hold your breath for that check!

  2. Steve,
    Yeah, I doubt I’ll be getting any recognition out of this one. It’s not like investing in the Canadina Banks is a really novel idea. However, I am just glad that someone who gets paid a lot more than I do actually agrees with my retirement plan.
    Who’s to say that Citigroup is right on this one though? I think I’ll just stick to my own retirement planning scheme using dividend growth stocks and let the analysts fight it out in the media.

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