According to a report published by Reuters, Citigroup (C) is planning to split the operations and technology functions of Institutional Clients Group (ICG), a unit that contributed around 63% of the total revenue in the third quarter of 2021.
The reorganization plan of the bank has been confirmed by a Citigroup spokesperson. Services offered by ICG include banking, markets, securities services, among others. (See Citigroup stock charts on TipRanks)
The Chief Executive of ICG, Paco Ybarra, said that the operations and technology teams “will continue to work closely with our businesses to develop innovative solutions that make it simpler for our clients to work with us.”
The Head of the Operations and Technology units at ICG, Stuart Riley, will now only manage the technology team. Additionally, Allison Szmulewicz, the manager of the unit’s Latin American Operations and Technology functions, will now act as the Interim Operations Chief.
Last month, Jefferies analyst Ken Usdin maintained a Buy rating on the stock and a price target of $87 (29.31% upside potential).
Usdin expects Citigroup to record earnings of $2.17 per share for the fourth quarter of 2021.
Consensus among analysts is a Strong Buy based on 4 Buys versus 1 Hold. The average Citigroup price target of $85.40 implies 26.93% upside potential from current levels. Shares have gained 18.7% over the past year.
Bloggers Weigh In
TipRanks data shows that financial blogger opinions are 96% Bullish on C, compared to a sector average of 70%.