Citi initiated with a Buy at Truist

Truist initiated coverage of Citi (C) with a Buy rating and $85 price target as part of a broader research note launching coverage of U.S. Large-Cap banks. Big banks are positioned to leverage embedded offense, cyclical recovery and capital flexibility to drive organic franchise expansion, double digit EPS growth, and attractive ROTCE – return on tangible common equity – over FY25 and FY26, the analyst tells investors in a research note. Citi also has a credible path to improved profitability and is making progress in its journey toward simplification and satisfying regulators, with incremental progress translating into expanding operating leverage, improving ROTCE and increasing capital returns, all of which should be sufficient to drive above-peer EPS, the firm adds.