Citizens Financial Group stock price target raised by Citi to $60

Investing.com - Citi has raised its price target on Citizens Financial Group (NYSE:CFG) to $60.00 from $57.00 while maintaining a Buy rating on the stock. Currently trading at $48.68, InvestingPro analysis suggests the stock is slightly undervalued, with the company showing strong momentum, trading near its 52-week high of $49.40.

The stock reacted positively to Citizens Financial Group’s third-quarter guidance, trading up approximately 4% compared to the banking index (BKX) which rose about 1.3%. This continues the stock’s impressive performance, with a total return of 24.66% over the past year.

Despite a slight miss in core pre-provision net revenue (PPNR), Citizens Financial Group showed strong net interest income due to continued net interest margin expansion and solid balance sheet growth, with management indicating that non-performing loans and net charge-offs have peaked.

Citi noted that Citizens Financial Group continues to trade at one of the steepest discounts on their implied cost of equity metric at approximately 11.6%, compared to 10.3% for the peer group, even assuming only 14% normalized return on tangible common equity plus upside to 2026 consensus.

The price target increase reflects Citi’s lowered cost of equity assumptions for Citizens Financial Group, which align with current implied volatility from the options market.

In other recent news, Citizens Financial Group reported impressive second-quarter earnings for 2025, surpassing Wall Street expectations with an earnings per share (EPS) of $0.92, compared to a forecast of $0.88. The company’s revenue also exceeded projections, reaching $2.04 billion against the expected $2.01 billion. This strong performance was supported by gains in net interest income and fee income, leading to a positive outlook for future growth. DA Davidson responded to these results by raising its price target for Citizens Financial Group to $55.00 from $49.00, maintaining a Buy rating on the stock. The firm cited improvements in credit trends and potential net interest margin enhancements as contributing factors. In parallel, Evercore ISI upgraded Citizens Financial Group from In Line to Outperform, also setting a price target of $55.00. Evercore ISI expressed confidence in the bank’s earnings trajectory, highlighting strengthening balance sheet trends and a promising outlook for net interest margins. These developments reflect a period of robust performance and strategic growth initiatives for Citizens Financial Group.

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