Citigroup (NYSE:C) Still Deutsche's (NYSE:DB) Top Pick in Sector

Among the large cap banking sector, Citigroup (NYSE:C) is still the top pick of Deutsche Bank (NYSE:DB), and even more so on the heals of the divestation of shares in the company by the Treasury.

Deutsche Bank said it sees it "as a positive for Citi shares, as the US gov't ownership has been at least somewhat of an overhang/concern for many investors and analysts this year," referring to worries over interference in company operations.

That, along with "continued reductions in Citi Holdings (assets down $140b or 26% vs. a year ago ex-FAS 166/167 impact in 1Q10), further improvement in credit quality, and growing tangible book," said Deutsche.

They maintain their "Buy" rating on Citi, which closed Tuesday at $4.62, up $0.17, or 3.82 percent. Deutsche has a price target of $5.50 on them.