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New York-based Citigroup Inc. (C) is a diversified financial service holding company. Valued at 107.9 billion by market cap, Citigroup provides a range of financial products and services, including corporate and investment banking, consumer banking and credit, securities brokerage, and wealth management to individuals and institutions worldwide.
Shares of this leading financial services company have outperformed the broader market over the past 52 weeks. Citigroup has gained 23.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 17%. In 2024, shares of Citigroup are up almost 10%, closely matching SPX’s 9.9% gain on a YTD basis.
Zooming in further, shares of Citigroup have outpaced the Nasdaq Bank ETF’s (FTXO) 14.6% gains over the past 52 weeks and 6.4% returns on a YTD basis.
Citigroup’s outperformance is driven by its organizational restructuring to eliminate extra management layers, which can improve its decision-making process, promote greater accountability, and enhance its focus on clients. However, despite beating Q2 profit expectations, the stock fell 1.8% on Jul. 12 due to concerns about higher-than-expected operating expenses and ongoing regulatory issues, including a $136 million fine for inadequate data management improvements. Investors were also worried about the bank's ability to meet its shareholder return target.
For the current fiscal year, ending in December, analysts expect Citigroup's EPS to grow 3.6% year over year to $5.84. The company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 22 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” and 10 “Holds.”
The configuration is slightly more bullish than three months ago, with 10 analysts suggesting a “Strong buy.”
On Jul. 15, Oppenheimer analyst Chris Kotowski maintained an “Overweight” rating on Citigroup and raised the price target to $86 - the street-high price target. This implies a potential upside of 52.1% from the current price levels.
The mean price target of $70.64 represents a premium of 24.9% to C's current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
