Bove Still Bullish, A Double For Citigroup (GS, C)

Calling for more and more gains after what we have seen in the troubled financial sector is a tough call on the surface.  Yet, that is what Rochdale’s Dick Bove is calling for, again.  He gave a quick CNBC interview today calling for more upside in some of the financial stocks.  Bove called Goldman Sachs Group Inc. (NYSE: GS) the best managed of the financial sector leaders.  But he also noted that Citigroup Inc. (NYSE: C) was the cheapest of the major financial stocks.

Citigroup is up more than 300% from its absolute lows when the market was pricing in the Armageddon scenario.  Yet Bove today said that he expects the price of Citigroup stock to triple in the next two to three years.

On Goldman Sachs, he said there is also no reason not to buy shares as the results are effectively even better than JPMorgan’s.  One catalyst Bove sees is the biggest explosion in mergers and acquisitions “that we’ve ever seen” and noted that Goldman Sachs would be a key participant and beneficiary of that trend.

This Citigroup call from Bove almost echoes what Deutsche Bank said in its “BUY” rating initiation.  Deutsche Bank gave only a $5.50 target, but the comments it offered the feeling that it left the possibility for much room above that.

JON C. OGG
OCTOBER 15, 2009