Citigroup (C) Positive on JPMorgan (JPM) Citing Credit Card Unit

After taking in what JPMorgan (NYSE:JPM) had to say on its investor day, Citigroup (NYSE:C) came away with a more upbeat outlook on the company, especially with the improving credit card unit of the giant financial institution.

Citigroup said that was the biggest takeaway from investor day from a positive perspective.

Citi analyst Keith Horowitz said about the overall outlook, “In our view, JPMorgan is identifying the right growth opportunities for a universal bank, where it has had proven past success, and we see wholesale international expansion as the logical next step, although growth in new markets will likely be tougher to execute than other goals.”

He added that in the short-term, there are risks associated with shrinking mortgage fees and net-interest income.

With credit normalizing faster than expected, Horowitz sees consensus estimates being upwardly revised. He maintains a "Buy" rating on JPMorgan, with a price target of $54 on the bank.

JPMorgan closed Wednesday at $47.94, gaining $1.12, or 2.39 percent.