In a report released yesterday, Erika Najarian from UBS maintained a Hold rating on Citigroup, with a price target of $108.00.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Erika Najarian’s rating is based on several factors influencing Citigroup’s current situation. The unexpected transition of the CFO role from Mark Mason to Gonzalo Luchetti ahead of Investor Day is seen as a strategic move, allowing Luchetti to establish new targets and take ownership of the company’s future direction. Despite the challenges of the CFO position at a major bank like Citigroup, Luchetti’s extensive experience in consumer and private banking roles positions him well for this transition.
Additionally, the timing of this leadership change aligns with Citigroup’s shift from an ‘improvement’ phase to a ‘growth’ phase, with expectations of setting higher targets. The realignment of Retail Banking into Wealth Management, although initially surprising, is considered a logical step given Citigroup’s focus on high-spending clients and its smaller retail presence compared to peers. These strategic changes, while promising, warrant a cautious approach, leading to the Hold rating as the company navigates these transitions.
Najarian covers the Financial sector, focusing on stocks such as Citigroup, Bank of America, and Capital One Financial. According to TipRanks, Najarian has an average return of 9.3% and a 56.56% success rate on recommended stocks.
In another report released on November 21, Evercore ISI also maintained a Hold rating on the stock with a $107.00 price target.