UPDATE 1-RESEARCH ALERT-Citigroup raises Bankrate to Buy

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Dec 1 (Reuters) - Citigroup raised its rating on Bankrate Inc RATE.O to "buy" from "hold," saying the operator of Internet-based consumer banking marketplace would benefit from the volatility in the financial markets, especially mortgage rate declines.

The brokerage said Bankrate.com, a broad consumer finance Web site, was driven by advertising revenue, which in turn was driven by financial news developments, especially rate volatility.

In a note to clients, Citigroup also said the pending relaunch of the Bankrate Web site and the switch from static to dynamic content and advertising should lead to improved pageview monetization.

Shares of the company were up 5 percent at $28.81 in the morning session on Nasdaq. (Reporting by Santosh Nadgir in Bangalore; Editing by Anil D'Silva)