UPDATE: Bank of America Raises PT on Citigroup on Strong Return Forecast

In a report published Thursday, Bank of America analyst Erika Najarian reiterated a Buy rating on Citigroup (NYSE: C), and raised the price target from $58.00 to $61.00.

In the report, Bank of America noted, “Despite recent underperformance and sell-side downgrades, we think C remains one of the most compelling ideas among large-cap financials heading into 2014. In this note, we have come up with six reasons why we think the market should stay bullish on C. But if we could boil it down to one line, it is this: At this mid-stage of recovery, investors should own the US-based, globally exposed bank stock trading below tangible book that has plenty of capital and is also a ‘self help' story. We raise our PO on C to $61 from $58, as we roll forward our valuation basis by one year. This implies a 20% return, or nearly double the S&P return implied by the 2000 target set by our strategists.”

Citigroup closed on Wednesday at $50.71.