Citi stock price target raised to $123 by Oppenheimer on strong earnings

Published 16/07/2025, 12:10
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Investing.com - Oppenheimer raised its price target on Citi (NYSE:C) to $123.00 from $107.00 on Wednesday, while maintaining an Outperform rating following the bank’s second-quarter earnings report. With the stock trading at a P/E ratio of 12.61 and showing strong momentum with a 30.81% year-to-date return, InvestingPro analysis suggests Citi remains undervalued.

Citi reported second-quarter earnings per share of $1.96, significantly exceeding both Oppenheimer’s estimate of $1.60 and the consensus forecast of $1.61. The bank achieved these results despite absorbing $177 million in adverse divestiture revenue impacts, equivalent to approximately $0.07 per share, plus additional severance and stranded costs. This performance aligns with InvestingPro data showing 5 analysts revising their earnings estimates upward for the upcoming period.

The bank’s total core revenues reached $21.8 billion, surpassing Oppenheimer’s projection of $21.0 billion, while expenses of $13.6 billion came in slightly below expectations. This performance resulted in core pre-provision earnings of $8.3 billion, compared to Oppenheimer’s estimate of $7.4 billion.

Net charge-offs totaled $2.2 billion, lower than the $2.5 billion Oppenheimer had anticipated. Following the earnings announcement, Citi shares rose 3.7% on a day when the KBW Bank Index (BKX) fell 2.4%.

Oppenheimer noted that while Citi’s turnaround appears to be in its early stages, the stock remains undervalued despite the positive performance and improved outlook.

In other recent news, Citigroup reported strong earnings for the second quarter of 2025, surpassing analysts’ expectations with earnings per share (EPS) of $1.96, beating the forecasted $1.61. Revenue also exceeded projections, reaching $21.67 billion against an anticipated $20.94 billion. Following these results, CFRA raised its price target on Citigroup to $110, maintaining a Buy rating, while TD Cowen increased its target to $95, maintaining a Hold rating. CFRA highlighted the improved execution of Citigroup’s strategy and successful business streamlining as key factors for the higher valuation. Additionally, Citigroup’s board authorized a quarterly dividend increase of 7.1% to $0.60 per share, reflecting the bank’s improved financial position. Citigroup also launched new digital asset services and a credit card product, aiming for a 10-11% return on tangible common equity (ROTCE) by 2026. The bank’s ongoing investments in digital innovation and wealth management technologies are part of its strategic initiatives to drive future growth.

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