Goldman Downgrades Citi To Sell; Lowe’s Reports Weak Quarter
Goldman Sachs analyst William Tanona this morning downgraded Citigroup (C) to “Sell” and suggested they might have to cut their dividend to raise capital. He also cut his price target on a number of other financial companies including Merrill Lynch, Morgan Stanley, Bear Stearns and Lehman Brothers (subscription required).
His report is very similar to the one issued by CIBC analyst Meredith Whitney in her “Sell” call on Citi a couple weeks ago.
Citi is the most actively traded stock on the NYSE and is once again being taken to the woodshed, down about 5%.
The financials are once again leading a selloff:
S&P: -1.39%
S&P Financials (XLF): -2.62%
In other news, home improvement retailer Lowe’s (LOW) followed Home Depot (HD) in reporting a tough quarter. Net income was down 10% on a 3.5% same store sales decrease (LOW FY 3Q Earnings Release).
Lowe’s is also taking another trip to the woodshed, down more than 7% and trading at its lowest level in more than 3 years.
Rumor has it, however, that they are making some improvements to the woodshed so it will be more hospitable in the future. Top executives at Citi are thrilled.