UPDATE: Nomura Initiates Coverage on Citigroup

In a report published Thursday, Nomura analyst Steven Chubak initiated coverage on Citigroup (NYSE: C) at Buy, with a $70.00 price target.

According to the report, analysts see unparalleled ROE potential at C under the new capital rules, as Citicorp efficiency targets are realized by 2015E and Citi Holdings turns profitable.

“We also see significant excess capital generation / best-in-class payout potential as the drag from Holdings moderates and DTA utilization accelerates,” the report said.

Some highlights from the report included:

-$70 TP implies +30% potential upside for the shares. -FY13E EPS at $4.6. -FY14E EPS at $5.05.

C closed Wednesday at $55.17.