Evercore ISI cuts Citi stock price target to $74 from $76

On Wednesday, Evercore ISI analyst Glenn Schorr revised the price target for Citi (NYSE:C) stock, reducing it to $74.00 from the previous $76.00 while maintaining an In Line rating. Following the announcement, Citi shares experienced an approximate 2% increase, outperforming the broader market by around 100 basis points (bps). With a market capitalization of $121.23 billion and analyst targets ranging from $70 to $110, InvestingPro analysis suggests the stock is currently trading near its Fair Value. The uptick in Citi’s stock is attributed to the company’s solid revenue growth and mix, consistent guidance, and strong financial position as it navigates through uncertain economic conditions.

Schorr highlighted Citi’s capital strength, reserves, and liquidity during the earnings call, emphasizing the bank’s preparedness to manage through various economic scenarios. This robust financial foundation is seen as vital for Citi’s ability to simultaneously pursue organic growth investments, maintain capital resilience and share buybacks, and invest in remediation of consent orders and competition, all while keeping expenses under control. InvestingPro data reveals the bank has maintained dividend payments for 15 consecutive years, currently offering a 3.48% yield, though recent data shows negative free cash flow trends.

The analyst pointed out that for Citi’s stock to perform well over the medium term, it is essential that none of these key areas are neglected, especially if credit costs were to exceed current forecasts. While disruptions in global trade could present Citi with opportunities to further assist clients, a global recession might result in negative credit impacts.

Schorr acknowledged the progress Citi has made thus far and noted the attractive valuation of the stock, which is supported by InvestingPro metrics showing a notably low PEG ratio of 0.22 and a beta of 1.28. However, he cautioned that any downturn in the credit cycle could place Citi at a disadvantage compared to some of its peers, due to the ongoing return on tangible common equity (ROTCE) deficit. Despite the challenging environment, Citi is positioned to handle the current backdrop, though achieving the 2025 targets and the 2026 Common Equity Tier 1 (CET1) goal is not guaranteed. For deeper insights into Citi’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Citigroup Inc. reported first-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $1.96, compared to the forecasted $1.86. The company also exceeded revenue projections, reporting $21.6 billion against the expected $21.3 billion, marking a 3% year-over-year increase. Citigroup’s robust financial performance was accompanied by a return on tangible common equity (ROTCE) of 9.1% and a capital return to shareholders totaling $2.8 billion. CFRA analyst Kenneth Leon maintained a Buy rating for Citi, though he lowered the stock price target to $85 from $90, citing global market uncertainties. Leon adjusted the earnings per share estimates, increasing the 2025 projection to $7.55 while reducing the 2026 forecast to $8.80. Citigroup’s Common Equity Tier 1 (CET1) ratio was noted at 13.4%, reflecting the bank’s strong capital position. The company provided full-year revenue guidance between $83.1 billion and $84.1 billion, with expectations for net interest income to rise by 2-3%.

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