The investment bank has cut its price target in half to just 12 pence and urged investors to sell, the report says.
Woolworths’ shares dropped nearly eight per cent, valuing the business at £215 million.
Bruce Hubbard, Citigroup analyst said the chain which runs over 800 stores has no equity value because of competition, the property structure, like-for-like sales declines and forecast losses of nearly £20 million this year.
Hubbard said: "We are far from persuaded that the retail chain can lay claim to any equity value. The last three to four years have seen a widely respected management team generally lose its battle against the competitive forces of a dire retail segment.
“Right now we look to be heading into a non-food consumer recession. Woolworths is not a chain where we would choose to ride out such a downturn. Put simply, this is not an equity that long-term investors should engage with, given the UK’s current macro-parameters.”