Banking giant Citigroup (NYSE:C) slipped in pre-market trading today. This comes after the bank warned that its fiscal fourth-quarter results would see an $880 million hit due to the devaluation of the Argentine peso, resulting in currency conversion losses. Furthermore, Citi has also recorded restructuring charges of $780 million in the fourth quarter. Both these charges were significantly higher than the “couple hundred million dollars” apiece that CFO Mark Mason had told investors in December.
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Overall, the bank has built a $1.3 billion reserve in Q4 related to transfer risk increases associated with its exposures in international markets. This includes $720 million in cross-currency exposures in Argentina and $580 million due to Russia’s heightened political and economic instability.
The bank is expected to announce its Q4 results on January 12.
What is the Target Price for Citigroup Stock?
Analysts remain cautiously optimistic about Citigroup with a Moderate Buy consensus rating based on seven Buys, nine Holds, and one Sell. Over the past year, Citi stock has gained by more than 10%, and the average Citigroup price target of $58.06 implies an upside potential of 9.5% at current levels.
