Keefe cuts Citi stock price target to $92, retains outperform

On Wednesday, Keefe, Bruyette & Woods adjusted their outlook on Citi stock, lowering the price target to $92 from the previous $96, while maintaining an Outperform rating. The firm’s analyst cited continued progress for the bank, highlighting a strong quarter with revenue exceeding expectations in net interest income (NII), investment banking (IB), and trading. The report noted that while Citi’s equities revenue saw a 23% year-over-year rise, aligning with its peers, its fixed income, currencies, and commodities (FICC) and mergers and acquisitions (M&A) growth outperformed competitors.

Citi’s card revenue also surpassed projections, although the analyst pointed out an uptick in net charge-offs (NCOs), which was partially attributed to seasonal factors. The firm indicated that these results should be monitored for potential impact if the economy weakens. Despite this, the bank’s revenues and expenses are reportedly on track, with increased clarity toward achieving a 10% return on tangible common equity (ROTCE) by 2026. InvestingPro analysis shows the bank has maintained dividend payments for 15 consecutive years, currently offering a 3.48% yield.

The analyst’s commentary underscored Citi’s trading at below 70% of tangible book value (TBV), alongside robust capital levels. According to InvestingPro, the stock currently trades at a price-to-book ratio of 0.64 and appears fairly valued based on their proprietary Fair Value model. This assessment reaffirms the Outperform rating previously given to Citi stock. The analysis reflects a cautiously optimistic view of the bank’s financial health and trajectory, considering the broader economic context.

Citi’s stock performance will likely continue to be watched closely by investors, as the bank strives to meet its financial targets in the coming years. The revised price target and sustained Outperform rating suggest confidence in Citi’s strategic direction and its ability to navigate market challenges. With analyst targets ranging from $70 to $110, investors seeking deeper insights can access Citi’s comprehensive Pro Research Report, along with 10+ additional ProTips and extensive financial metrics available on InvestingPro.

In other recent news, Citigroup Inc (NYSE:C). reported a strong performance for the first quarter of 2025, with earnings per share (EPS) of $1.96, surpassing analysts’ expectations of $1.86. The company’s revenue reached $21.6 billion, exceeding the forecasted $21.3 billion, and marking a 3% year-over-year increase. Analysts at CFRA adjusted their price target for Citigroup shares to $85 from $90, maintaining a Buy rating, while Evercore ISI revised their price target to $74 from $76, keeping an In Line rating. Citigroup’s robust capital position was highlighted, with a Common Equity Tier 1 (CET1) ratio of 13.4%. The bank’s performance was further strengthened by its ability to return $2.8 billion to shareholders, including $1.75 billion in buybacks. The company also provided a full-year revenue guidance of $83.1 billion to $84.1 billion, with net interest income expected to rise by 2-3%. These developments underscore Citigroup’s operational strength and strategic focus amidst a challenging global economic landscape.

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