Banking giant Citigroup (C) has entered partnership with data intelligence firm Palantir (PLTR) to upgrade the technology for its wealth management platform. By modernizing its data management system, Citi seeks to bolster its position in the financial services industry.
Under the deal, Citi’s wealth business will use Palantir’s data analytics tools, which are expected to improve operational efficiency. Also, the partnership could offer several benefits to clients, such as a smoother onboarding process, better account management tools, and real-time market updates.
In an internal memo to staff, Citi’s wealth division head, Andy Sieg, noted that the collaboration would help fill information gaps within the platform.
Importantly, in its Q1 earnings presentation on April 15, Citi mentioned that “modernize infrastructure” and “data enhancements” are its key priorities for 2025 and 2026. Thus, it is reasonable to say that Citi’s deal with Palantir was driven by this goal.
Analysts Bullish on Citigroup Post Q1 Results
Following the company’s Q1 results, nine Wall Street analysts rated C stock a Buy. Among the bullish analysts, John McDonald CFA from Truist (TFC) reduced Citi stock’s price target to $79 (27.2% upside from current level) from $84.
The reduced price target reflects slightly lower EPS estimates, conservative fee revenue expectations, and higher provisions. Also, the analyst has considered higher uncertainty and risks in the economy, which led to using more careful valuation estimates.
Similarly, RBC Capital analyst Gerard Cassidy cut Citi’s price target to $78 (25.6% upside) from $85 but kept a Buy rating. The lower price target reflects reduced non-interest income, partly offset by higher net interest income.
Is Citigroup a Good Stock to Buy?
Turning to Wall Street, C stock has a Strong Buy consensus rating based on 10 Buys and three Holds assigned in the last three months. At $85.96, the average Citigroup price target implies a 38.42% upside potential. Shares of the company have declined 22% over the past three months.
