Citi Raises S&P 500 EPS Guidance While Noting Short Term Headwinds

Tobias M Levkovich of Citi thinks the stock market is slightly undervalued. Writing in a research note from last week, Citi slightly raised their earnings forecast from $117.25 to $117.50, slightly ahead of consensus.  Noting “a variety of issues have conspired to restrain 1Q14 economic and thereby earnings growth,” the report cited a familiar excuse, the weather, among other items, including “a stronger US dollar relative to the Canadian dollar and the Mexican peso (affecting the country’s largest trading partners).”  As a result, Citi’s lowered its near term earnings estimates while raising the longer term view. Citi ups long term estimates, cuts…