The bank's research arm downgraded the technology hardware and equipment sector to underweight from market weight, saying continuing tight credit markets will likely hit capital expenditure trends. At the same time, it said earnings revisions and valuations in the sector may be a cause for concern.
As a result, Citigroup removed IBMÂ and added Aetna
to its recommended list.
Health care on the rise
The bank upgraded healthcare equipment and services to overweight from market weight, saying the underperforming sector presents a good entry point.
