Citizens Financial, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Manan Gosalia from Morgan Stanley maintained a Hold rating on the stock and has a $53.00 price target.
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Manan Gosalia has given his Hold rating due to a combination of factors influencing Citizens Financial’s outlook. The company’s operating EPS for the second quarter of 2025 exceeded expectations, driven by increased fee income, particularly from mortgage and other income sources. However, this positive performance was partially counterbalanced by higher expenses, with net interest income and provisions aligning with forecasts.
Despite a positive outlook on loan growth and a decline in nonaccrual loans, Gosalia remains cautious due to macroeconomic uncertainties. The projected return on tangible common equity (ROTCE) for the fourth quarter of 2026 is slightly below the company’s medium-term target range, with potential upside risks hinging on improved credit performance and capital management. Additionally, while the capital ratios are expected to remain stable in the near term, the potential benefits from an easier stress test process in 2026 could influence future capital strategies. These mixed factors contribute to the Hold rating, reflecting a balanced view of the company’s potential risks and opportunities.
According to TipRanks, Gosalia is a 4-star analyst with an average return of 8.7% and a 59.12% success rate. Gosalia covers the Financial sector, focusing on stocks such as Cadence Bank, M&T Bank, and Commerce Bancshares.
In another report released today, Barclays also maintained a Hold rating on the stock with a $55.00 price target.