Wells Fargo has named Citigroup (C) its “dominant number one pick” among large-cap banks, raising the price target from $95 to $110 and maintaining a “Buy” rating.
Don't Miss Our New Year's Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Wells Fargo analyst Mike Mayo highlights that Citi’s expenses are likely to be lower than expected, as the bank has already tackled major cost-related challenges. He views the shift from “value destruction to creation” as a turning point for Citi’s stock. Mayo also emphasizes that Citi’s management reorganization is the most significant in 50 years, positioning the bank for stronger performance.
Further, the analyst contends that even in a mild recession, Citi’s book value is expected to grow by 20%, showing the bank’s strength and ability to handle tough times. Meanwhile, the stock is currently trading 20% below its tangible book value, indicating it may be undervalued. This suggests an opportunity for investors, as Citi’s stock could rise if its book value continues to grow.
Other Analysts’ Opinions Ahead of Q4 Earnings Results
Citigroup is set to release its Q4 2024 results next week on January 15. Ahead of the earnings announcement, four analysts have kept their Buy ratings on the stock.
David Konrad, a five-star analyst at KBW, raised Citi’s price target to $85 from $82, maintaining an Outperform rating and naming it one of their top picks for 2025. The firm notes that Citi’s stock is undervalued, trading at a 30% discount compared to its peers and below its tangible book value. They expect the bank to see higher revenue and earnings from improving investment banking and trading conditions.
Similarly, Wolfe Research raised its price target for Citi to $83 from $77, also maintaining an Outperform rating. The firm believes Citi offers strong long-term growth potential.
Is Citigroup a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Citigroup stock based on 11 Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 36% rally in its share price over the past year, the average Citigroup price target of $80.78 per share implies 13.77% upside potential.
