UBS analyst Erika Najarian maintained a Hold rating on Citigroup today and set a price target of $100.00.
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Erika Najarian’s rating is based on several factors influencing Citigroup’s current financial standing and future prospects. A significant point of consideration is the underperformance of Banamex, a subsidiary of Citigroup, which has been struggling with profitability issues. Despite some improvements in recent years, Banamex’s return on equity (ROE) and return on assets (ROA) lag behind its peers, indicating challenges in achieving competitive profitability.
Additionally, Banamex has been losing market share in both deposits and loans, which further impacts its financial performance. However, there is potential for improvement, as Banamex’s expense-to-assets ratio suggests a possibility for cost optimization. Moreover, the potential capital unlocked from the sale of a 25% equity stake in Banamex could enhance Citigroup’s buyback capacity. These mixed factors contribute to the Hold rating, reflecting a cautious outlook on Citigroup’s ability to navigate these challenges effectively.
In another report released on September 25, TD Cowen also reiterated a Hold rating on the stock with a $95.00 price target.
Based on the recent corporate insider activity of 85 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of C in relation to earlier this year.