Citigroup, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Ebrahim Poonawala from Bank of America Securities maintained a Buy rating on the stock and has a $107.00 price target.
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Ebrahim Poonawala has given his Buy rating due to a combination of factors that highlight Citigroup’s strategic moves towards de-risking and improving profitability. The recent announcement of selling a 25% stake in Banamex to Fernando Chico Pardo is seen as a positive step in reducing risk and setting a potential floor price for Banamex ahead of a future IPO. This transaction is expected to contribute to Citigroup’s long-term profitability goals, surpassing the management’s 2026 ROTCE target.
Additionally, the sale aligns with Citigroup’s broader strategy of exiting certain consumer markets, which has been effectively managed despite challenging economic conditions. The bank’s ability to navigate regulatory requirements and interest rate shocks without significant risk management issues further supports the Buy rating. Overall, these strategic decisions are viewed as enhancing Citigroup’s financial stability and growth prospects, justifying the positive outlook.
Poonawala covers the Financial sector, focusing on stocks such as Huntington Bancshares, Citigroup, and Truist Financial. According to TipRanks, Poonawala has an average return of 15.8% and a 75.17% success rate on recommended stocks.
In another report released today, KBW also maintained a Buy rating on the stock with a $105.00 price target.