Goldman Sachs told clients to bet on Citigroup shares before fourth-quarter earnings later this month as new Chief Executive Officer Michael Corbat cuts costs and withdraws from some markets. Investors should buy call options on shares in Citigroup before the bank announces its results Jan. 17, Goldman Sachs said today in a note to clients…The New York-based firm also added Citigroup to its “conviction buy list” and said shares could rise to $49 within a year. Corbat, 52, who replaced Vikram Pandit in October, is laying off thousands of workers and pulling out of some countries as he seeks to reduce costs at Citigroup. His plans, announced last month, make the New York-based bank the “best large-cap restructuring story,” Goldman Sachs analysts led by Richard Ramsden said in another note. “Under new CEO Michael Corbat,** we believe Citi is poised to improve returns and increase efficiency,” the analysts wrote.
Buy Citigroup Options Before Earnings, Goldman Sachs Advises [Bloomberg]
**Nevermind that the plan to cut a whole buncha stuff began while Vikram was still CEO. No, no, why should anyone ever want to mention that? No reason to do him any favors. Uncle Vik doesn’t need your charity or pity.