In a report released yesterday, Ebrahim Poonawala from Bank of America Securities reiterated a Hold rating on Citizens Financial (CFG – Research Report), with a price target of $44.00.
Ebrahim Poonawala’s rating is based on a combination of factors influencing Citizens Financial’s stock performance. The company’s recent earnings slightly exceeded expectations due to stronger net interest income and lower provisions, yet macroeconomic uncertainties are expected to continue affecting customer activity. This has led to a downward revision of earnings estimates for the upcoming quarters, as weaker client activity is anticipated to impact revenue growth.
Despite the potential for margin expansion in 2025, the outlook for Citizens Financial is tempered by concerns over macroeconomic conditions, such as unemployment and GDP, which have already affected customer activity. Furthermore, the bank’s exposure to weaker capital markets and potential rapid interest rate cuts by the Federal Reserve pose additional risks to earnings. While there is potential for growth through private banking expansion, these factors contribute to a neutral risk/reward scenario, justifying the Hold rating with a price objective of $44.
In another report released today, Barclays also maintained a Hold rating on the stock with a $49.00 price target.
CFG’s price has also changed moderately for the past six months – from $42.410 to $35.460, which is a -16.39% drop .