UPDATE 1-Avoid Citigroup shares for now: Fox-Pitt
June 29 (Reuters) - Citigroup (C.N: Cotización) shares should be avoided for now as it is far too early to estimate the magnitude of forthcoming losses, an analyst at Fox-Pitt Kelton said, adding that there was technical pressure on the stock following the conversion of the company's preferred shares.
Citigroup, which is looking to convert billions of dollars of preferred stock into common stock to boost capital, has lost $36 billion in the last six quarters and is one of banks that did not get approval to repay U.S. government bailout funds.
Fox-Pitt analyst David Trone, however, more than halved his second-quarter loss estimate on Citigroup to 21 cents per share from 57 cents, citing better capital markets.
He also forecast a sequential net revenue growth of 6 percent to $25.2 billion for Citigroup in the second quarter.
Separately, Trone said he sees a 12 percent core revenue growth for JPMorgan Chase & Co (JPM.N: Cotización) in the second quarter.
He, however, slashed his second-quarter earnings estimate for JPMorgan Chase to 17 cents per share from 35 cents to partly reflect a one-time expense related to the repayment of funds borrowed under the U.S. governments' Troubled Asset Relief Program.
The analyst rates the shares of both Citigroup and JPMorgan "in line."
Citigroup shares were down 4 cents at $2.99, while those of JPMorgan were down 16 cents at $34.29 in morning trade on the New York Stock Exchange.
For alerts, please double-click [ID:nWNAB2868] (Reporting by Santosh Nadgir in Bangalore; Editing by Himani Sarkar)
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