Goldman downgrades Citigroup to neutral

Citigroup Inc.’s stock was downgraded to “sell” from “neutral” by Goldman Sachs Inc. today, according to published reports.
In a research note, New York-based Goldman Sachs said that Citigroup is facing an estimated $15 billion in write-downs on collateralized debt obligations through the next two quarters, The Wall Street Journal said.
Some $11 billion of that will arrive this quarter, with the remaining $4 billion to following the first quarter of next year, wiping out nearly six months of profits, Goldman noted.
Citi’s exposure to structured investment vehicles, leverage loans and subprime mortgages will keep the firm from hitting its targets, Goldman Sachs observed.
Earnings will also take a hit, as Goldman analyst William Tanona slashed Citi’s price target to $33 from $48, and cut his profit-per-share forecast to $3.80 from $4.65 for 2008, according to Reuters.
For the following year, that forecast will slide to $4.60, down from the predicted $5.20, Reuters said.