Citigroup Strategists Upgrade US Stocks on ‘Defensive Tilt’

Citigroup Inc. strategists have joined Wall Street peers in turning more constructive on US stocks, saying elevated war uncertainty supports a preference for higher-quality and defensive companies.

Strategists including Beata Manthey upgraded US equities to overweight from neutral on a “quality/defensive tilt” in their global allocation. They also downgraded emerging markets stocks to neutral from overweight, citing vulnerability to energy shocks and a stronger dollar in their report to investors.