Citibank To Redeem Notes Worth $2.55B In January; Street Sees 9% Upside

Citibank on Dec. 28 announced the redemption of 2.850% notes due Feb. 2021 and Feb. 2021 floating rate notes, on January 12. Citibank is the consumer division of Citigroup (C).

Citibank’s 2.850% notes and floating-rate notes constituted $1.3 billion and $1.25 billion, respectively, in aggregate principal. The cash redemption price for the notes would amount to the par value plus outstanding and unpaid interest.

The move is part of the steps the bank is taking to improve efficacy of its financing and capital structure.

On Dec. 16, Piper Sandler analyst Jeffery Harte raised Citigroup’s stock price target from $56 to $68 and reiterated a Buy rating. The new price target implies 11.2% upside potential.

Harte believes that recent management commentary had improved earnings visibility, and therefore the analyst views Citi as “undervalued and attractive heading into 2021.” (See C stock analysis on TipRanks)

From the rest of the Street, the stock scores an analyst consensus of a Strong Buy based on 13 Buys and 3 Holds. The average analyst price target of $66.83 implies an upside potential of 9.3% to current levels. Shares have lost 23.5% year-to-date.

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