Citizens Financial, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Manan Gosalia from Morgan Stanley upgraded the rating on the stock to a Buy and gave it a $71.00 price target.
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Manan Gosalia has given his Buy rating due to a combination of factors that indicate a strong potential for profitability improvement at Citizens Financial. The company is expected to close its profitability gap with peers by 2027, with a projected increase in ROTCE from 11% in the second quarter of 2025 to 15% by 2027. This improvement is largely independent of interest rate cuts, which are anticipated to enhance credit quality, loan growth, and fees.
Additionally, Citizens Financial is positioned to benefit from several positive catalysts over the next 12-18 months, such as the expansion of its Private Bank, improved credit conditions, and reduced capital requirements following the 2026 stress test. The stock is currently trading at a discount, and the anticipated ROTCE improvement makes it more attractive. With a price target of $71, applying an 11x P/E multiple on 2027 EPS, the stock presents a potential 33% upside, leading to the upgrade to an Overweight rating.
Gosalia covers the Financial sector, focusing on stocks such as Cadence Bank, Huntington Bancshares, and M&T Bank. According to TipRanks, Gosalia has an average return of 9.3% and a 59.89% success rate on recommended stocks.
In another report released on September 19, Citi also maintained a Buy rating on the stock with a $65.00 price target.