Wells Fargo analyst Mike Mayo is bullish about Citigroup’s (NYSE:C) prospects and expects the shares of the financial services giant to more than double in the next three years. The analyst increased his 12-month price target to $70 from $60 on January 1 and expects Citigroup’s stock to hit $119 in 2026.
Further, Citigroup is Wells Fargo’s top pick in the banking space for 2024, and Mayo maintained a Buy rating on the stock. Citigroup stock has gained over 21% in one year. Moreover, it closed 3.1% higher on Tuesday following Mayo’s optimistic outlook.
Factors Supporting Citigroup Stock
Citigroup is focused on simplifying its organizational structure to eliminate management layers, which will support its growth. Moreover, its focus on returning capital to shareholders acts as a catalyst. Further, the bank is progressing well in exiting its consumer businesses outside the United States and is strengthening its risk management and controls.
Highlighting Citigroup’s reorganization plan, the analyst said that the bank’s turnaround measures seem to be effective and could significantly lift its earnings in the next three years. Mayo expects Citi’s EPS to double by 2026, reflecting its cost control measures, benefits from efficiency improvement, and share repurchases.
With this backdrop, let’s look at the analysts’ consensus rating for Citigroup stock.
What is the Future of Citigroup Stock?
While Mayo is bullish about Citigroup stock, analysts’ consensus rating indicates that Wall Street is cautiously optimistic about its prospects.
The stock has received six Buy, nine Hold, and one Sell recommendations for a Moderate Buy consensus rating. However, analysts’ average price target of $55.16 implies 4% upside potential from current levels.
