Wells Fargo ups Citi target, calls ‘dominant number one pick’

Wells Fargo raised the firm’s price target on Citi (C) to $110 from $95 and keeps an Overweight rating on the shares. The firm says Citi is its “dominant number one pick under almost any scenario” in the large-cap bank space. The bank’s expenses should beat expectations “because Citi has already taken the pain,” the analyst tells investors in a research note. Wells sees Citi’s returns “inflecting from value destruction to creation,” which it believes “should be pivotal for the stock.” The company’s book value should grow even in a recession while stock trades 20% below current tangible book value, according to Wells Fargo.