Citizens Financial Group stock: DA Davidson reiterates Buy on strong Q3 results

Published 16/10/2025, 14:16
Citizens Financial Group stock: DA Davidson reiterates Buy on strong Q3 results

Investing.com - DA Davidson reiterated its Buy rating and $59.00 price target on Citizens Financial Group (NYSE:CFG) following the bank’s third-quarter performance. The $22.31 billion bank currently trades at a P/E ratio of 14.31, and according to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimates.

The firm highlighted Citizens Financial Group’s strong Q3 results and positive fourth-quarter outlook. Management reaffirmed its medium-term return on tangible common equity (ROTCE) target of 16-18%, compared to the 11.7% achieved in Q3 2025. The bank has demonstrated strong momentum with a 48.73% price return over the past six months, while maintaining steady revenue growth of 4.61%.

DA Davidson noted several tailwinds supporting the bank’s outlook, including net interest margin expansion, momentum in its private banking business which delivers 20-25% return on equity, and the company’s metro New York expansion efforts.

The research firm also pointed to Citizens’ next efficiency program called "Reimagine the Bank," which is expected to exceed the benefits of its previous two-year TOP 6 program that delivered $400 million in benefits. This new initiative should be additive to the bank’s ROTCE target.

Credit trends at Citizens Financial Group continue to improve, with DA Davidson reporting that the bank is not seeing any credit issues based on leading credit indicators.

In other recent news, Citizens Financial Group reported its third-quarter earnings for 2025, surpassing analysts’ expectations. The company announced an earnings per share (EPS) of $1.05, which was higher than the forecast of $1.03. Additionally, Citizens Financial Group exceeded revenue projections, reporting $2.12 billion compared to the anticipated $2.10 billion. These results highlight a positive performance for the financial services company in the recent quarter.

In related developments, TD Cowen raised its price target for Citizens Financial Group to $75 from $67, maintaining a Buy rating on the stock. The adjustment in the price target reflects a favorable outlook from the firm following the company’s strong earnings report. These recent developments are of interest to investors monitoring the company’s financial health and market performance.

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