Citigroup (C) is set to release its fourth quarter 2024 financials on January 15. Wall Street analysts expect the company to report earnings of $1.22 per share for Q4 versus a loss of $1.16 per share in the year-ago quarter. However, revenues are expected to decrease by 52% year-over-year, reaching $19.5 billion for the quarter.
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Analysts’ Opinions Ahead of Citigroup’s Q4 Earnings
Ahead of Citi’s earnings announcement, eight analysts have maintained their Buy ratings on the stock, while two have kept their Hold ratings. In line with this, last week, Wells Fargo (WFC) raised its price target for Citigroup from $95 to $110, naming it their “dominant number one pick” among large-cap banks. Wells Fargo reaffirmed its “Buy” rating, citing strong expectations for Citi’s performance in the near future.
Further supporting this bullish outlook, TipRanks’ Bulls Say, Bears Say tool highlights analysts’ belief that Citi’s earnings will be strong, driven by improved cost management. In addition, they see the company’s recent management overhaul as a positive.
Conversely, bears argue that Citi faces significant challenges, including higher credit costs driven by increased card net credit losses and a growing allowance for credit losses. They also point to the ongoing impact of high expenses from investments, which continue to weigh on profitability.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 4.10% move in either direction.
Is Citigroup a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Citigroup stock based on 13 Buys and five Holds assigned in the past three months, as indicated by the graphic below. After a 46% rally in its share price over the past year, the average Citigroup price target of $82.21 per share implies 12.97% upside potential.
