Truist Securities raises Citi stock price target to $99 on higher EPS estimates

Published 16/07/2025, 17:30
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Investing.com - Truist Securities raised its price target on Citi (NYSE:C) to $99.00 from $93.00 on Wednesday, while maintaining a Buy rating on the stock. The bank’s shares, currently trading at $89.28, are approaching their 52-week high of $91.80, with InvestingPro analysis suggesting the stock remains undervalued.

The price target increase reflects Truist’s revised earnings per share (EPS) estimates for the banking giant, with 2025 EPS now projected at $7.55, up $0.35 from previous forecasts. The stock has demonstrated strong momentum, delivering a 30.81% return year-to-date while maintaining an attractive P/E ratio of 12.84.

Truist indicated the upward revision is primarily driven by Citi’s second-quarter performance, which exceeded the firm’s prior estimate by $0.34, while its second-half 2025 estimates remain largely unchanged.

The firm now models 2025 revenues slightly above Citi’s updated guidance of approximately $84 billion, with expenses aligned with the bank’s new guidance of $53.4 billion, and credit card net charge-offs expected near the midpoints of the outlook ranges for both branded and retail services portfolios.

For 2026, Truist increased its EPS estimate to $9.70, up $0.45, citing similar factors including higher anticipated revenues, partially offset by higher expenses, with lower provisions and increased share repurchases of $4 billion quarterly in the second half of 2025.

In other recent news, Citigroup has reported robust financial results for the second quarter of 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $1.96, higher than the forecasted $1.61. The bank’s revenue also exceeded predictions, reaching $21.67 billion against an anticipated $20.94 billion. Following this strong performance, Oppenheimer raised its price target for Citi to $123, maintaining an Outperform rating, while CFRA increased its target to $110, keeping a Buy rating. Piper Sandler also adjusted its price target to $104, citing an optimistic earnings outlook. TD Cowen raised its target to $95, though it maintained a Hold rating, reflecting caution despite Citi’s strong quarterly performance. Additionally, Citi’s board authorized a quarterly dividend increase of 7.1% to $0.60 per share, following favorable stress test results. These developments indicate positive momentum for Citigroup, as the bank continues to focus on strategic growth and financial strength.

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