Citi stock price target cut to $78 at RBC Capital

On Wednesday, RBC Capital Markets adjusted its outlook on Citigroup Inc. (NYSE:C) shares, lowering the price target to $78 from $85, while retaining an Outperform rating on the financial institution. Currently trading at $63.01, Citigroup’s stock sits below InvestingPro’s Fair Value estimate, with analyst targets ranging from $70 to $110. The revision follows Citigroup’s recent quarterly earnings report, which surpassed both RBC Capital’s and the broader market’s expectations.

Gerard Cassidy, an analyst at RBC Capital, highlighted Citigroup’s successful navigation through uncertain global market conditions. The bank’s management expressed confidence in reaching their medium-term financial goal, aiming for a return on tangible common equity (ROTCE) of between 10-11% by 2026. This target is an improvement over the 9.1% ROTCE reported in the first quarter of 2025. InvestingPro data reveals the bank has maintained dividend payments for 15 consecutive years, with a current yield of 3.48%.

Citigroup’s Services division emerged as its strongest, boasting a 26% ROTCE. Other notable segments included Markets with a 14% ROTCE, U.S. Personal Banking at 13%, Banking at 11%, and Wealth Management with a 9.4% ROTCE. According to Cassidy, achieving these targets will largely hinge on modest revenue growth paired with strict expense management.

The analyst’s statement underscored the attainability of Citigroup’s goals on paper, emphasizing that the key to success lies in effective execution. Citigroup’s management team remains focused on driving performance to meet these outlined objectives in the coming years.

In other recent news, Citigroup Inc. reported first-quarter earnings for 2025, exceeding expectations with an earnings per share (EPS) of $1.96, compared to the anticipated $1.86. The company also posted revenue of $21.6 billion, surpassing the forecast of $21.3 billion. Analysts from CFRA, Truist Securities, Keefe, Bruyette & Woods, and Evercore ISI have adjusted their price targets for Citigroup, reflecting varying degrees of optimism about the bank’s future performance. CFRA reduced its price target to $85 while maintaining a Buy rating, citing global market uncertainties. Truist Securities also cut its price target to $79, maintaining a Buy rating, with a focus on revised earnings estimates and macroeconomic risks. Meanwhile, Keefe, Bruyette & Woods lowered their target to $92 but retained an Outperform rating, praising Citigroup’s strong revenue in several segments. Evercore ISI reduced its target to $74, maintaining an In Line rating, and highlighted Citigroup’s solid financial foundation. These developments underscore Citigroup’s robust performance and the cautious optimism from analysts regarding its strategic direction amidst economic challenges.

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