Citi opens ‘negative catalyst watches’ on Fifth Third, Northern Trust

Citi opened a “30-day negative catalyst watch” on Fifth Third (FITB) and “90-day negative catalyst watch” on Northern Trust (NTRS) heading into the Q2 reports. The firm keeps Neutral ratings on both stocks. Citi sees Fifth Third as among the hardest hit of regional banks from higher unrealized losses in the quarter. The analyst sees potential for a negative market reaction to the print, noting the stock currently trades at a relative premium to regional peers. For Northern Trust, the firm continues to believe that consensus estimates need to be reset lower. With the stock trading at a premium on Citi’s implied cost of equity metric, the shares may come under pressure as earnings are reset lower, says Citi.