Is it the Trump Effect hitting bank stock Citigroup (NYSE:C) today? Letitia James, New York’s Attorney General, leveled a lawsuit at Citigroup just like former President Trump took recently, but Citigroup’s stock sure doesn’t seem like a business getting sued by a state. Shares are up over 5% in the closing minutes of Tuesday’s trading, making it clear that investors don’t have a problem.
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The lawsuit, meanwhile, focused on Citi’s ability to protect customers impacted by scams. More specifically, the state of New York didn’t find much to like about Citi’s policies therein, noting that account holders were misled “…about their rights after their accounts are hacked and funds are stolen….” Further, according to the recently filed complaint, Citi “…illegally denies reimbursement to victims of fraud.”
James brought along several examples, including one customer from New York who claimed to lose $40,000 after clicking on a link that looked like a text message from Citi. James is not only seeking complete repayment of losses, with interest, but also new security tools and other enhancements that will purportedly protect customers.
A Rapidly Retooled Citigroup
Some of those measures might already be coming soon. One thing we know about Citigroup over the last few weeks is that it’s in a serious state of flux right now. It’s already staged layoffs on several occasions, with the latest round taking on management roles. But even as the layoffs continued, there are multiple reports suggesting that Citi’s previously seen rallies can keep going from here. With some looking for Citi stock to potentially double over even current levels, the sky might actually be the limit.
What is the Target Price for Comcast Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Citigroup stock based on eight Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 14% rally in its share price over the past year, the average Citigroup price target of $60.72 per share implies 6.54% upside potential.
