Citi Group Adjusts Its Valuation of American Technology Stocks
Citi Group has revised its valuation of American technology stocks downwards in line with the general market uptrend.
The bank’s team has downgraded its rating for financial company stocks,
recommending maintaining the current ratio during the second quarter of this year.
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Citi Group analysts believe that the upward momentum of American stocks will extend to cover broader sectors beyond technology,
adopting a more cautious stance towards this sector’s stocks.
Led by Scott Chronert, the team has adjusted its recommendation for technology stocks,
preferring to maintain the current weight in investment portfolios instead of increasing it,
following earlier advice to reduce the relative weight of hardware company stocks.
Citi’s strategists have pointed out that “the investment scenario we predicted months ago is now opening the door for the growth of sectors less affected by market fluctuations, especially those sensitive to interest rate changes.
” In their analysis of the technology sector by category, analysts have continued to recommend increasing the relative weight of software companies’ stocks while maintaining the current market weight for semiconductor companies’ stocks.
As for other sectors, they have reduced their recommendation for financial companies’ stocks to maintain the current relative weight during the second quarter of the year.
S&P
The “S&P 500” index is currently trading 3% above Citi Group’s year-end target of 5100 points,
thanks to expectations of the American economy achieving a controlled downturn,
in addition to growing excitement about artificial intelligence. In a separate note,
Chronert indicated that the bank’s investor sentiment index has reached a level of euphoria,
reflecting a decreased likelihood of achieving positive returns over the next year.
Citi Group Adjusts Its Valuation of American Technology Stocks