Shares of Citigroup (C) are down 5% on March 27 amid media reports that the New York-based lender is planning to acquire a regional bank.
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Reports say senior executives at Citigroup have held preliminary discussions in recent months about purchasing a regional bank to boost its deposits, which could support its lending and trading operations. Citigroup executives raised the possibility of a regional bank purchase with U.S. regulators.
Reportedly, market regulators have told Citigroup that they would be open to reviewing a formal proposal regarding a regional bank acquisition. The Trump administration has shown a willingness to support mergers and acquisitions, both large and small.
Which Bank does Citigroup Plan to Buy?
Citigroup remains under two consent orders that require it to get regulatory approval before pursuing any acquisitions in the market. It looks like regulators won’t be an obstacle to Citigroup’s plans. The question is though, which regional bank does Citigroup plan to buy?
The answer isn’t immediately known as Citigroup hasn’t made a public announcement about any deal. However, speculation is that Citigroup will target banks with approximately $500 billion in assets. The potential takeover targets are as follows:
- Truist Financial (TFC)
- PNC Financial Services (PNC)
- Stifel Financial (SF)
- Raymond James Financial (RJF).
Is C Stock a Buy?
Citigroup’s stock has a consensus Strong Buy rating among 18 Wall Street analysts. That rating is based on 16 Buy and two Hold recommendations issued in the last three months. The average C price target of $133.11 implies 24.25% upside from current levels.
