Citi to write down $3 billion in fourth quarter: Fox-Pitt
(Reuters) - Fox-Pitt Kelton said it expects Citigroup Inc (C.N) to take net write-downs of $3 billion during the fourth quarter, and widened its loss expectation on the company for the period to reflect higher credit costs and write-downs.
The brokerage widened its quarterly loss estimate for Citigroup to 79 cents a share from 8 cents, while its 2009 earnings view on the company was cut to 28 cents a share from 69 cents.
"The key question is whether management will be able to continue to find buyers for business units, which is necessary to fortify the capital base against further credit losses and write-downs," analyst David Trone said in a note to clients.
The analyst, who rates Citigroup "in line," cut his price target on the stock to $16 from $20.
The specter of Citigroup's problem asset levels may continue to hinder investor confidence, the analyst said.
"Citi trades below tangible book, although we believe this is at risk given still-large problem asset exposures," Trone said.
Shares of Citigroup closed at $8.36 Tuesday on the New York Stock Exchange.
(Reporting by Adheesha Sarkar in Bangalore; Editing by Pratish Narayanan)
