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Investing.com - DA Davidson has raised its price target on Citizens Financial Group (NYSE:CFG) to $55.00 from $49.00 while maintaining a Buy rating on the stock. The stock, currently trading at $48.86, is approaching its 52-week high of $49.40, with InvestingPro data showing analyst targets ranging from $43 to $60.
The price target increase follows what the research firm described as "strong 2Q results and positive update for 3Q," which prompted DA Davidson to raise its earnings per share estimates for the banking company. The bank, with a market capitalization of $21.19 billion, currently trades at a P/E ratio of 14.74 and offers a dividend yield of 3.44%.
DA Davidson noted that Citizens Financial Group reaffirmed its 2025 guidance and still believes it can achieve 150 basis points of pre-provision operating leverage in 2025.
The firm pointed to several positive factors for Citizens Financial, including potential net interest margin improvements, the company’s private bank buildout, and its metro New York expansion efforts.
Credit trends are also improving for the bank, with management believing that net charge-offs peaked in the first quarter of 2025 and non-performing loans peaked in the third quarter of 2024, according to DA Davidson’s analysis.
In other recent news, Citizens Financial Group reported its second-quarter earnings for 2025, surpassing Wall Street expectations with an earnings per share (EPS) of $0.92 against a forecast of $0.88. Revenue also exceeded projections, coming in at $2.04 billion compared to the expected $2.01 billion. The company’s strong performance was driven by gains in net interest income and fee income, which contributed to the earnings beat. Additionally, Citizens Financial Group maintained its full-year guidance, projecting growth in net interest income and operating leverage. Evercore ISI upgraded the stock from In Line to Outperform, citing improved earnings prospects and a strengthening balance sheet. The firm anticipates 30% EPS growth at Citizens Financial Group in 2026, which is notably higher than the 16% expected at peers. The bank is also introducing a new TOP program aimed at increasing efficiencies and supporting future growth.
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