At an investor conference this week, Citigroup (C) management appeared to catch the market off guard with regard to the tax reform impact. The stock took a minor dip on the news, but some of the concerns are off basis.
Citigroup still trades near the multi-year highs at $75. Plenty of reasons exist to expect more upside despite this minor bump in the road from tax reform.
What caught investors off guard was the mention of a one-time $20 billion hit from the current Senate version of the tax reform bill. CFO John Gerspach discussed the impact as follows: