Wells Fargo analyst Mike Mayo said in a Monday research note that 11 of 15 board members at Citigroup Inc. C, -0.07% should be replaced, as he cut his earnings outlook for the company. “We forecast much lower-than-expected 2022-2023 earnings as Citi must repair prior underinvesting in a period of rising wage and other costs,” Mayo said. “Citi’s board should have known about the degree of legacy issues and, in our view, have treated shareholders as a low priority.” Mayo cut his 2022 earnings estimate for Citi to $6 a share from $6.70 a share, lower than the Wall Street analyst consensus of $7.55 a share in a FactSet survey. Shares of Citigroup have gained 10.2% so far in 2022, compared to a rise of 3.3% year-to-date rise by the Financial Select Sector SPDR ETF XLF, +0.07% and a drop of 6.6% by the S&P 500. SPX, +0.09%
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