Citigroup Inc., Bank of America Corp., UBS AG, Deutsche Bank AG and
Dominion Resources Inc. Highlighted in the Zacks Analyst Blog
CHICAGO, Dec. 3, 2012 /PRNewswire/ -- Zacks.com
announces the list of stocks featured in the Analyst Blog. Every
day the Zacks Equity Research analysts discuss the latest news and
events impacting stocks and the financial markets. Stocks recently
featured in the blog include Citigroup Inc. (C), Bank of
America Corp. (BAC), UBS AG (UBS), Deutsche Bank
AG (DB) and Dominion Resources Inc.(D).
(Logo:
http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Today, Zacks is promoting its ''Buy'' stock recommendations.
Four daily picks are offered free.
Here are highlights from Monday's Analyst Blog:
More Layoffs at Citi, Bonuses Cut
Citigroup Inc. (C) is contemplating laying off 150
employees coupled with a 10% trim of bonuses in its trading and
investment-banking division, according to a Bloomberg report. The
move comes as Citi counters revenue slouch with expense cut
initiatives.
Scheduled for this quarter, the layoffs would impact Citigroup's
businesses including equities trading and underwriting. Further,
this year bonuses will be reduced at the company's securities and
banking division. However, leading performers might not encounter
the cut.
Notably, the economic slump has had a severe impact on the
Securities sales-and-trading business across several large Wall
Street firms. With investors growing wary of the European debt
crisis as well as U.S. economic outlook, this business has
witnessed reduced volumes and lower revenues.
The onset of the current layoffs was triggered prior to the
departure of Mr. Pandit, the former Chief Executive Officer of
Citi. Further, with its new CEO, Michael
Corbat, Citi remains committed to continue with the
efficiency improvement measures and the expense management
efforts.
In Conclusion
Amidst a challenging operating environment, lower returns and
stringent capital norms, many Wall Street banks are downsizing
businesses to meet the aforementioned challenges. Apart from Citi,
Bank of America Corp. (BAC), UBS AG (UBS) and
Deutsche Bank AG (DB) are rightsizing their business and
slashing jobs to address revenue slump.
As such, in a tepid economic recovery, bolstering revenue has
become a challenge. Therefore, sustaining and elevating
profitability through cost reduction measures including layoffs and
bonus cuts are what several banks are looking at. So, until a
recovery in revenue occurs, such actions are anticipated to
continue to help strengthen profit levels and capital ratios.
Citi currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating. Though cost cut initiatives are
encouraging, we believe that change in estimates might occur only
after the announcement of any major restructuring or for any
substantial prospect of growth in revenue.
Dominion's Virginia Solar Plan OK'd
Richmond-based utility
Dominion Resources Inc.'s (D) business arm, Dominion
Virginia Power received approval from the state's regulators for
the construction and operation of a solar power demonstration
project in Virginia.
The construction of the 30-megawatt solar generation facilities
was sanctioned by the State Corporation Commission ("SCC"). The
facilities would be constructed at different locations by leasing
rooftops of commercial, industrial, and public government
buildings. Each installation will have a generating capacity of 500
kilowatts to 2 megawatts and will span a roof area of 75,000 square
feet or more.
The renewable program's estimated cost was set at $111 million by the company. However, regulatory
authorities restricted capital spending to $80 million to reduce the burden on customers.
When operational, the project output would be adequate to power
around 6,000 homes during peak daylight hours.
The solar facility will boost Dominion's position given the
current positive vibe in the U.S. energy market that favors
eco-friendly sustainable power generation. Although the use of wind
energy for electric generation has gained considerable grounds in
the U.S., we believe solar energy is not far behind.
The potential increase in solar energy usage in the U.S. will
significantly complement Dominion's targeted renewable growth goals
of 15% for its Virginia operations
by 2025. The Zacks Consensus Estimates for the fourth quarter and
full year 2012 presently stand at 69
cents and $3.06 per share,
respectively.
Today, Zacks is promoting its ''Buy'' stock recommendations.
Four daily picks are offered free.
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