Wells Fargo analyst Donald Fandetti reiterated a Buy rating on Citigroup (C – Research Report) yesterday and set a price target of $110.00.
Donald Fandetti has given his Buy rating due to a combination of factors that highlight Citigroup’s positive trajectory towards value creation by 2026. The company has reaffirmed its guidance for 2025, showing revenue growth across all five lines of business and demonstrating significant improvement in operating leverage. This indicates a shift from previous value destruction to a more promising outlook, which is not yet reflected in the current stock price.
Additionally, Citigroup’s financial health is underscored by its accelerated stock buybacks and stable credit conditions, with no changes in the card loss guidance. The bank’s return on tangible common equity (ROTCE) is expected to improve, driven by increased revenues and reduced expenses, leading to better efficiency ratios. These factors, combined with a robust capital return strategy and positive growth estimates in various business segments, support the Buy rating despite any short-term uncertainties.
Fandetti covers the Financial sector, focusing on stocks such as American Express, Synchrony Financial, and Capital One Financial. According to TipRanks, Fandetti has an average return of 10.0% and a 59.75% success rate on recommended stocks.
In another report released today, KBW also maintained a Buy rating on the stock with a $92.00 price target.