Citigroup Upgrade by CFRA Research


Citigroup Inc. has received an upgrade to buy from hold at CFRA Research as the bank’s turnaround plan led by Chief Executive Jane Fraser continues to impress.

Strategy and Analyst Insights

CFRA analyst Kenneth Leon highlighted that Citigroup is currently trading at a discount compared to its peers. The bank’s strategic efforts to reduce costs and concentrate on its core strengths are expected to drive increased profitability and enhance free cash flow.

“We see C executing its strategy to streamline the bank and drive growth in areas where it is a market leader,” Leon mentioned in a recent research note.

Business Expansion

Citigroup’s strong presence in corporate treasury services remains a key factor contributing to recurring revenue generation and new account growth, according to Leon.

In addition to this, the bank is realigning its global banking operations for institutions and personal banking outside the U.S., with plans to incur restructuring charges of $1.5 billion in 2023 and $700 million to $1 billion in 2024.

Price Target Adjustment

CFRA’s Leon raised Citi’s price target by $11, now set at $65 per share, surpassing the Wall Street consensus of $61 per share.

While the revised price target reflects a bullish outlook, it still maintains a 20% discount to Citigroup’s net tangible book value of $81.65 per share.

Analyst Recognition

This upgrade by CFRA adds to the positive sentiment surrounding Citigroup, with Piper Sandler analysts previously upgrading Citi to overweight from neutral on Feb. 15.

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