In a report released today, Ebrahim Poonawala from Bank of America Securities reiterated a Buy rating on Citigroup (C – Research Report), with a price target of $100.00.
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Ebrahim Poonawala has given his Buy rating due to a combination of factors that suggest Citigroup is on a promising path towards improved competitiveness and profitability. Jane Fraser’s strategic vision, which includes international consumer exits, balance sheet de-risking, and investments in technology and personnel, is seen as giving Citigroup a fighting chance in its complex turnaround effort.
Furthermore, Citigroup’s profitability is showing signs of improvement across its business segments, particularly in wealth and banking, which are under new leadership. The management’s target of achieving a 15-20% ROTCE for the wealth business by 2026 indicates potential for significant growth. Additionally, anticipated share buybacks and a more balanced regulatory environment are expected to enhance expense control. With an improving economic outlook, Citigroup’s risk/reward profile appears compelling, leading to a revised price objective of $100, reflecting confidence in the company’s strategic execution.
According to TipRanks, Poonawala is a 5-star analyst with an average return of 12.7% and a 70.07% success rate. Poonawala covers the Financial sector, focusing on stocks such as JPMorgan Chase, Goldman Sachs Group, and Morgan Stanley.
In another report released today, Barclays also maintained a Buy rating on the stock with a $95.00 price target.