Citigroup's Transformation Plan Takes a Disappointing Turn. Is the Investment Thesis Still Intact?
Since the beginning of 2021, (NYSE: C) has been working on a multiyear plan to modernize and simplify the bank, focus on better-performing businesses, and ultimately boost returns, which management hopes will lead to a higher valuation and stock price.
A key part of this plan had been selling the consumer, small business, and middle-market banking arm in Citigroup's Mexican subsidiary, Citibanamex, which has been a high-performing business. But recently, Citigroup said that it would no longer pursue a sale of these businesses and would instead spin them off in an initial public offering (IPO).
While this had always been a possibility, most believed a sale would be the likely outcome and the quickest way to expedite the bank's multiyear transformation, which makes this news disappointing. Here's why.
Source Fool.com
Citigroup Inc. Aktie
Hohe Buy- und niedrige Sell-Zahlen bei Citigroup Inc. zeigen ein stark positives Sentiment.
Ein leicht positives Potenzial wird für Citigroup Inc. mit einem Kursziel von 71 € im Vergleich zu 59.65 € gesehen.
