Banking giant Citigroup (New York Stock Exchange: C) fell in pre-market trading today. This comes after the bank warned that its fourth-quarter financial results would see a loss of $880 million due to the depreciation of the Argentine peso, leading to currency conversion losses. Furthermore, Citi also recorded $780 million in restructuring charges in the fourth quarter. Both charges were significantly higher than the “several hundred million dollars” CFO Mark Mason told investors in December.
Overall, the bank built a $1.3 billion reserve in the fourth quarter related to increased transfer risk associated with its exposures in international markets. This includes $720 million of cross-currency exposures in Argentina and $580 million due to increasing political and economic instability in Russia.
The bank is expected to announce its fourth-quarter results on January 12.
What is the target price for Citigroup stock?
Analysts remain cautiously optimistic on Citigroup with a Moderate Buy consensus rating based on seven buys, nine holds and one sell. Over the past year, Citigroup shares have risen more than 10%, and Citigroup’s average price target of $58.06 suggests 9.5% upside potential at current levels.