Citi price target raised to $95 from $85 at TD Cowen on strong 2Q results

Investing.com - TD Cowen has raised its price target on Citi (NYSE:C) stock to $95.00 from $85.00 while maintaining a Hold rating following the bank’s second-quarter earnings report. The stock, currently trading at $90.72, sits near its 52-week high of $91.80, having delivered an impressive 30.81% return year-to-date according to InvestingPro data.

The bank reported stronger-than-expected revenue growth in the second quarter of 2025, which contributed to a core earnings per share (EPS) beat for the period.

Citi has also raised its revenue guidance while keeping its expense guidance essentially unchanged, positioning the company to make continued progress toward its 10-11% return on tangible common equity (ROTCE) target.

Despite acknowledging Citi’s strong quarterly performance and positive momentum, TD Cowen remains cautious, citing potential disruption to what it describes as the company’s "crown jewel business."

The firm’s decision to maintain a Hold rating reflects this balanced view, recognizing Citi’s improved financial performance while expressing concerns about specific business risks.

In other recent news, Citigroup reported strong second-quarter earnings for 2025, surpassing analysts’ expectations with earnings per share (EPS) of $1.96, significantly higher than the forecasted $1.61. The bank’s revenue reached $21.67 billion, exceeding the anticipated $20.94 billion, marking an 8% year-over-year increase. In light of these results, CFRA raised its price target for Citigroup to $110 from $93, maintaining a Buy rating. The research firm highlighted Citigroup’s improved execution of strategy and business streamlining as key factors for the valuation upgrade. Additionally, Citigroup’s board authorized a quarterly dividend increase of 7.1% to $0.60 per share, reflecting its strengthened financial position. Citigroup has also been active in launching new digital asset services and a credit card product, aiming for a 10-11% return on tangible common equity by 2026. The bank continues to focus on digital innovation and investment banking, contributing to its positive financial performance. Furthermore, Citigroup plans to continue its $20 billion share repurchase program, signaling confidence in its strategic direction.

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