Bank of America Securities analyst Ebrahim Poonawala has reiterated their bullish stance on C stock, giving a Buy rating today.
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Ebrahim Poonawala’s rating is based on Citigroup’s strategic actions under CEO Jane Fraser, which are expected to enhance the bank’s competitiveness and achieve a sustained return on tangible common equity (ROTCE) of over 10% starting in 2026. The recent second-quarter results and management’s optimistic outlook during the earnings call have reinforced this belief, with Fraser emphasizing that the 10% to 11% ROTCE target for next year is just a milestone towards long-term success and shareholder value creation.
Poonawala also highlights Citigroup’s favorable stock reaction to management’s guidance for significant share buybacks, which are projected to be sustainable and could represent about 10% of the market cap annually. Additionally, the bank’s strong capital position, potential capital flexibility from the Banamex IPO or sale, and anticipated expense reductions contribute to a positive outlook. In a market with limited opportunities, Citigroup’s valuation appears attractive, potentially drawing new long-term investors as profitability improves and regulatory concerns diminish.
In another report released today, Barclays also maintained a Buy rating on the stock with a $100.00 price target.
Based on the recent corporate insider activity of 86 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of C in relation to earlier this year.