U.S. futures subdued as government shutdown stretches into second week
Investing.com - Keefe, Bruyette & Woods (KBW) has reiterated its Outperform rating and $105.00 price target on Citi (NYSE:C) stock, citing "positive direction" and "good momentum" for the banking giant.
KBW noted that Citi’s revenues are on track to exceed the company’s $84 billion guidance for fiscal year 2025, and even with higher related expenses, the net impact to pre-tax income remains neutral to positive.
The financial services firm highlighted positive operating leverage, expense control, and Citi’s progress toward achieving 10-11% return on tangible common equity (ROTCE) for 2026 as key factors supporting its outlook.
KBW estimates Citi’s 2026 ROTCE at 9.8%, slightly below the consensus estimate of 10.0%, but maintains its bullish stance on the bank’s fundamentals.
The firm also pointed to healthy capital markets and a favorable regulatory environment as providing tailwinds for Citi, referring to these positive factors as "KBW’s Triple Crown" for the banking institution.
In other recent news, Citigroup announced a significant partnership with BlackRock, selecting the asset management firm to handle approximately $80 billion in client assets. This move marks the closure of Citigroup’s last in-house asset management operations, as BlackRock will manage investments for thousands of Citigroup’s wealthiest clients. This development adds to BlackRock’s existing management of a portion of Citigroup’s $635 billion in client investments. Additionally, Truist Securities has raised its price target for Citigroup to $105, maintaining a Buy rating due to the company’s improved return on tangible common equity. Citigroup is also restructuring its debt capital markets team for the UK, Europe, Middle East, and Africa by hiring Rob Cascarino from JPMorgan Chase. Furthermore, Citibank plans to redeem $2.5 billion in notes due in 2025 as part of its liability management strategy. The redemption includes both fixed and floating rate notes, with the redemption price set at par value plus accrued interest. These developments reflect Citigroup’s ongoing strategic adjustments and partnerships.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.