Citigroup Stands to Win From Mexico Trade Deal Investors have seen Citigroup’s international exposure as a negative this year. Photo: Callaghan O’Hare Citigroup (ticker: C), owner of the second-largest bank in Mexico, stands to gain from the U.S.-Mexico trade accord that President Donald Trump announced Monday.
The stock closed up $1.72, or 2.4%, at $72.39, leading a strong banking sector. The group was up about 1%, as measured by the KBW index of 24 bank stocks.
Wells Fargo Securities analyst Mike Mayo wrote in a client note that Citi’s shares have been depressed this year by tension over trade between the U.S. and Mexico. Monday’s agreement should improve sentiment on Citi stock, which is down about 3% this year, making it one of the worst performers in the KBW index, he said.
“At a minimum, any new trade deal could reflect the absence of a negative and, on the upside, new potential growth opportunities,” Mayo wrote. Citi is Mayo’s top pick in the sector; he has assigned the company an Outperform rating, with a $100 price target.
In terms of deposits and branches, Citigroup’s Citibanamex is the No. 2 bank in Mexico, ranking behind BBVA Bancomer, a unit of Spain’s BBVA Group (BBVA). The Citi unit has $72 billion of assets and almost 1,500 branches, accounting for about 20% of Citi’s global consumer bank, Mayo says.
Mayo wrote that Citi is spending about $1 billion to upgrade its Mexican branch network. The Mexican unit […]
Continue Reading Original Article: CITIGROUP STANDS TO WIN FROM MEXICO TRADE DEAL / BARRONS MAGAZINE
Citigroup Stands to Win From Mexico Trade Deal Investors have seen Citigroup’s international exposure as a negative this year. Photo . . .
