Bloomberg News

Bank St. Petersburg Falls to 3-Week Low on Citigroup Cut

June 26, 2012

Bank St. Petersburg dropped to a three-week low after Citigroup Inc. (C:US) cut its price estimate for the stock and removed the lender from its top picks after earnings slumped.

The shares fell 0.2 percent to 54.63 rubles by the close in Moscow, the lowest level since June 4.

Citigroup cut its estimate by 32 percent to 80 rubles a share, citing “weak” earnings, while maintaining its buy recommendation on the stock, according to an e-mailed research note today. First-quarter net income tumbled 94 percent to 123.3 million rubles ($3.8 million) from a year earlier, the bank based in Russia’s second-biggest city, said in a June 8 statement on its website.

“Following two quarters of weak results and a bleak outlook for second-quarter earnings, investors are likely to wait for a turnaround,” Citigroup analysts led by Simon Nellis, said in the report.

Citigroup cut its price estimate for Nomos Bank shares by 12 percent to $14.20, while reiterating its buy recommendation, according to the note. The stock closed down 1.1 percent at 660 rubles in Moscow. Citigroup cut the price estimate on Bank Vozrozhdenie by 5.4 percent to 756 rubles, keeping its buy recommendation. The shares gained 0.8 percent to 497.60 rubles.

To contact the reporters on this story: Ksenia Galouchko in Moscow at;

To contact the editor responsible for this story: Gavin Serkin at

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