Citigroup Remains A 'Work In Progress,' Says Argus

Argus changed its EPS estimates for Citigroup Inc C following the second-quarter earnings release. In its Market Digest published Monday, the analysts lowered their 2016 EPS estimate to $4.72 from $5.00 and 2017 estimate to $5.34 from $5.80.

Citi reported adjusted 2Q16 EPS of $1.24, which is $0.14 above the consensus estimate. Adjusted revenues and net income dropped 8 and 14 percent, respectively.

According to the analysts, Citi's capital measures have improved, as the stock is trading at a discount based on P/E and P/B. However, they believe shares are fairly valued given the current challenges faced by the company.

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"In our view, Citi remains a work in progress as it attempts to get better control of expenses and improve its efficiency ratio, and as it winds down assets at Citi Holdings. Financial metrics for the basic lending businesses have been improving, although they have often been masked by weaker revenues in the capital markets businesses, particularly investment banking and equity markets," wrote Argus.

The company maintains its Hold rating on Citi.

At time of writing, Citi was trading up 0.79 percent on the day at $44.68.

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