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Top Picks from Stan Wong (Citigroup, Sun Life Financial & MGM Resorts International)

March 9, 2017

Citigroup is a diversified financial services holding company that provides a broad range of financial services to consumer and corporate customers in over 160 countries. In the intermediate term, Citigroup shares look to benefit from rising interest rates and a lighter regulatory environment. Citigroup’s potential for large capital returns also makes the shares attractive. Indeed, the company recently announced a $1.75-billion increase to its share buyback program in November 2016. Citigroup’s recent co-branding deal with Costco (in the U.S.) has fared very well and should add to earnings results. Longer term, Citigroup is particularly leveraged to the rise of the emerging markets — a distinct advantage to some of its competitors. Lastly, the stock’s valuation looks compelling with a price-to-book ratio of 0.83x, a discount to its peer group.

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