Citigroup: Buy Rating on Earnings Momentum, Transformation Progress, and Discounted Valuation Upside Into 2026

J.P. Morgan analyst Vivek Juneja has maintained their bullish stance on C stock, giving a Buy rating today.

Vivek Juneja has given his Buy rating due to a combination of factors tied to Citigroup’s earnings outlook, transformation progress, and valuation. He expects the bank to benefit meaningfully from a healthy macro environment and robust markets-related activity, given Citi’s business mix and exposure to these areas. Juneja also highlights management’s commitment to reaching a 10–11% return on tangible common equity by 2026, supported by efficiency improvements, better cost discipline over time, and gradual reduction of regulatory and legacy drags such as stranded costs and deferred tax assets. Although certain segments like Markets and Wealth Management show uneven performance and expenses are trending slightly higher than previously anticipated, he views these as manageable within the broader improvement trajectory.

Juneja’s positive stance is further underpinned by specific business drivers that signal ongoing momentum. The Banking franchise is demonstrating strong revenue growth, especially in lending and advisory, while core net interest income is rising on the back of favorable balance sheet mix and higher markets-related NII. Citi’s efficiency ratio is on a path toward the ~60% range by 2026, indicating better operating leverage despite near-term volatility. Finally, his December 2026 price target of $130 assumes valuation metrics (P/TBV and P/E) that move closer to peers as profitability improves, yet still embed a discount, leaving room for upside as the bank executes on its strategic and financial targets.

In another report released today, Barclays also maintained a Buy rating on the stock with a $146.00 price target.