Key insights
- Truist raised its price target on Citi to $133, citing increased investment banking fees, markets revenues, and share repurchases. The firm expects Citi's CET-1 ratio to improve due to the sales of its Russia business and Banamex tranche. Increased share repurchase estimates partially offset the capital ratio benefit. Jefferies also initiated coverage on Citigroup with a buy rating. This suggests a moderately bullish outlook for Citi, potentially influencing the broader financial sector.
Investing.com - Truist Securities raised its price target on Citi (NYSE:C) to $133 from $129 on Wednesday while maintaining a Buy rating on the stock. Trading at $113.63 with a P/E ratio of 16.28, the stock appears undervalued according to InvestingPro analysis, which places it on the Most Undervalued stocks list.
The firm increased its earnings per share estimates for the bank to $10.50 for 2026 from $10.45 and to $12.40 for 2027 from $12.30. The revisions reflect higher investment banking fees and markets revenues, which Citi guided up mid-teens percent in the first quarter, along with increased share repurchases.
Truist incorporated the recently closed sales of Citi’s Russia business and the second Banamex tranche into its model. Both transactions are expected to benefit Citi’s common equity tier 1 ratio this quarter.
The firm raised its share repurchase estimate to $4 billion per quarter in 2026 and $4 billion to $5 billion per quarter in 2027 to partially offset the capital ratio benefit alongside improving organic capital generation. An InvestingPro tip notes that management has been aggressively buying back shares, one of several insights available in the comprehensive Pro Research Report covering Citi. Truist expects Citi could report a mid-13 percent CET-1 ratio this quarter due to the deal benefits.
Citi expects a CET-1 benefit from closing the Russia sale this quarter of $4 billion, equal to Truist’s buyback estimate for the first quarter. The bank will also see a benefit from selling the next 24 percent of Banamex in addition to organic capital build from earnings less the dividend.
In other recent news, Citigroup Inc. has been experiencing notable developments. Jefferies initiated coverage on Citigroup with a buy rating, citing an improving return profile due to broad-based revenue growth and disciplined expense control. This move reflects confidence in the bank’s transformation progress, with Jefferies setting a price target of $135.00. Additionally, Citigroup’s CEO, Jane Fraser, announced that the bank’s investment banking fees are tracking a mid-teens percentage increase year-over-year for the first quarter, alongside growth in the markets business.
In another development, Citigroup has been tapped by Leonardo Maria Del Vecchio to increase his stake in Delfin, his family’s holding company, with Citigroup leading the financing for the transaction. Furthermore, Citigroup is set to play a significant role in SpaceX’s initial public offering, overseeing the selling of shares to individual investors alongside Bank of America. These recent developments highlight Citigroup’s active involvement in various financial activities and strategic initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.