Flagstar Financial upgraded to Buy from Neutral at Citi

Citi upgraded Flagstar Financial (FLG) to Buy from Neutral with a price target of $15, up from $13.50. The firm says that after conversations with management on expenses, and credit due diligence, it has a “high degree of confidence” that the first two pieces of Flagstar ‘s three-part playbook are playing out better than consensus expectations. With a line of sight to positive earnings by Q4, Citi believes the shares should reflect a valuation much closer to tangible book value, the analyst tells investors in a research note. The firm says that over the next few quarters, operational redundancies, headcount and branch trimming, coupled with improved credit and funding are key to ending 2025 with a positive earnings run-rate.