Citigroup shares have gained 11 percent in the past month and recently hit the $5 mark, the first time since April of 2010.
But David Konrad, senior vice president and head of large cap bank research at Keef, Bruyette and Woods, said investors should start looking to move their positions elsewhere.
Citigroup "can hold on around $5 [a share] and there are a lot of positive things for them—the reduction of Citi Holdings has been far greater than I’d thought,” Konrad told CNBC.
“Certainly the outlook is better and investors really like their international platform, but at $5, we’re getting near a full valuation.”
In addition, Konrad said he sees some headwinds ahead for the firm with the new Basel III rules.
“We recommend clients rotate into names such as Goldman Sachs or JPMorgan at this point.”
More on Citi:
Scorecard—What He Said:
- Konrad's Previous Appearance on CNBC (July 14, 2010)
More Market Intelligence:
- 2011 Will Be 'Good' For Big Banks: Stock Picker
- Financials Are 'Very Cheap' — Buy Now: Pro
- Cramer: 10 Reasons to Buy Bank of America
CNBC Data Pages:
Other Financial Giants Now:
Bank of America
Konrad has investment banking clients who owns hares of C.