Wells raises Citi target to $70, expects stock to double to $100+ over 3 years

Wells Fargo raised the firm’s price target on Citi to $70 from $60 and keeps an Overweight rating on the shares. The firm cites Fed clarity on rates and likely softer than proposed regulation. Further, Wells says it expects stock to double to $100-plus over 3 years. Citi’s management delayering, exits, tech modernization and transition from dozens of universal banks to 5 LOBs should make Citi simpler and more profitable, the firm argues. Wells believes EPS should double from $5 to $10 due to efficiency, buybacks and revenue, offset by higher credit, aided by record headcount reduction and less transformation costs.