UPDATE: Oppenheimer Lowering Price Target On Citigroup

Oppenheimer & Co. is out with a research report on Citigroup C after it reported earnings on Friday. The price target is being lowered to $53 from $55, but it still has an Overweight rating on shares. In a note to clients, Oppenheimer & Co. writes, "While it was not a sterling quarter in terms of core earnings, the important things are all in place: (1) Credit quality continues to improve, (2) thus, Citi's structural profitability continues to improve, (3) the businesses that should be stable—regional consumer banking and transaction services—were stable, and (4) Citi Holdings continues to wind down. Citi also made disclosures about the GIIPS countries and Basel III capital that should give investors confidence that the exposures are manageable and capital position is strong. Citi has also started the process of chewing through its DTA which should aid capital generation. We continue to think the stock is grossly undervalued at 82% of TBV that is growing and becoming harder with each passing quarter." Shares of C closed at $38.38 on Friday.