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Investing.com - Truist Securities raised its price target on Citi (NYSE:C) to $105.00 from $99.00 on Wednesday, while maintaining a Buy rating on the stock. According to InvestingPro data, Citi currently trades at $94.81 with a market capitalization of $174.48 billion, and analysis suggests the stock remains undervalued.
The price target increase follows Citi’s strong year-to-date performance, with shares outperforming the BKX index by 15 percentage points and delivering a remarkable 37.57% return year-to-date. The stock now trades at approximately 1.0x tangible book value for the first time in years, reflecting improved confidence in its return on tangible common equity (ROTCE). InvestingPro data shows the stock trading near its 52-week high of $97.49, with an impressive one-year return of 58.95%.
Truist Securities noted that since the global financial crisis, Citi shares have traded below 1.0x tangible book value 85% of the time, as the bank struggled to maintain a ROTCE above 10% for sustained periods. This history creates what the firm calls "a high execution bar" for Citi to achieve its 2026 targets.
The research firm maintained its 2025 earnings per share (EPS) estimate for Citi while raising its 2026 EPS forecast to $9.85, an increase of $0.15. Truist also introduced a new 2027 EPS estimate of $11.80.
Citi is expected to provide a near-term financial update at an industry conference next week, where investors will likely focus on the bank’s progress toward its 2026 targets of $87-92 billion in revenues, expenses below $52.6 billion, and a ROTCE of 10-11%. For deeper insights into Citi’s valuation and growth prospects, including 12 additional ProTips and comprehensive financial analysis, check out the full research report available on InvestingPro.
In other recent news, Citigroup Inc. has announced a significant restructuring of its debt capital markets team for the UK, Europe, Middle East, and Africa. This includes the hiring of Rob Cascarino from JPMorgan Chase & Co to serve as co-head of the division alongside Uday Malhotra. Additionally, Citibank, N.A., a subsidiary of Citigroup, will redeem $2.5 billion in notes due in 2025 as part of its liability management strategy. This redemption comprises $1.75 billion in fixed-rate notes and $750 million in floating-rate notes.
Fitch Ratings has affirmed Citigroup’s long-term and short-term issuer default ratings at ’A’ and ’F1’, respectively, maintaining a stable outlook. Citigroup is also exploring stablecoin custody services as part of its expansion into cryptocurrency, following recent policy changes in Washington. The move aligns Citigroup with other financial institutions like Fiserv and Bank of America, which are also considering stablecoin services. Furthermore, analysts at Bank of America have noted that credit card delinquencies appear to have peaked, suggesting a stabilization in consumer behavior.
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