Prudential Upgrades Citigroup to 'Overweight'

Prudential upgraded Citigroup (C

) to overweight from neutral.

Analyst Michael May says after recent management meetings, he has more confidence with Citigroup's international activities and capital markets, which together total half of the firm's revenues. First, capital markets should be good, given backlogs, good brokerage results, and the company's recent restructuring. Second, international should grow 10%+ this year after showing only 3% income growth in the past three years. Third, the company is one of only few large banks that benefit from this rate environment. Also, he expects positive operating leverage.

May raised the 2004 earnings per share estiamate by 15 cents, to $3.95, and upped the 2005 estimate by 20 cents, to $4.35. He upped the $49 target to $60.