Piper Sandler raises Citi stock price target to $104 on earnings outlook

Published 16/07/2025, 13:08
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Investing.com - Piper Sandler raised its price target on Citi (NYSE:C) stock to $104.00 from $84.00 on Wednesday, while maintaining an Overweight rating on the banking giant. The stock, currently trading at $90.72, sits near its 52-week high of $91.80, having delivered a 39% return over the past year.

The price target adjustment follows Citi’s second-quarter 2025 earnings report and updated guidance from the company, which prompted the research firm to revise its earnings estimates upward.

Piper Sandler increased its 2025 earnings per share (EPS) estimate for Citi from $7.26 to $7.30, while its 2026 EPS forecast was raised more substantially from $9.27 to $9.46.

The firm noted it has shifted its valuation methodology to focus on 2026 estimated earnings, assuming shares will trade at approximately 11 times 2026 estimated EPS, compared to its previous approach of 12 times 2025 estimated EPS.

Piper Sandler reiterated its Overweight rating on Citi stock, indicating continued confidence in the bank’s performance outlook.

In other recent news, Citigroup has reported impressive second-quarter earnings for 2025, significantly surpassing analysts’ expectations. The bank achieved earnings per share of $1.96, well above the forecasted $1.61, and reported total revenues of $21.67 billion, exceeding the anticipated $20.94 billion. Oppenheimer, TD Cowen, and CFRA have all responded positively to these results, with Oppenheimer raising its price target for Citi to $123 and maintaining an Outperform rating, while TD Cowen and CFRA adjusted their targets to $95 and $110, respectively. Citi has also increased its revenue guidance for the year, projecting full-year revenues of approximately $84 billion. Analysts from CFRA noted Citi’s improved execution and strategy, leading to an increase in their earnings estimates for the bank. Additionally, Citi’s board has authorized a quarterly dividend increase of 7.1% to $0.60 per share, reflecting the bank’s strengthened financial position. Despite the positive outlook, TD Cowen remains cautious, maintaining a Hold rating due to potential risks to Citi’s core business.

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