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Headquartered in New York City, Citigroup Inc. (C) is a major global financial institution with a substantial market presence. With a market cap of $121.5 billion, serving a diverse clientele, including individuals, corporations, governments, and institutions, Citigroup provides a comprehensive array of financial services, ranging from retail and commercial banking to wealth management and investment banking.
Shares of the financial giant have significantly outperformed the broader market over the past year. The stock has gained 60.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.2%. In 2024 alone, C is up 23.9% compared to SPX’s 20.1% rise on a YTD basis.
Narrowing the focus, C stock has underperformed compared to the Invesco KBW Bank ETF (KBWB). The exchange-traded fund has gained about 64.3% over the past year. Moreover, the ETF’s 26.7% gains on a YTD basis outshined the stock’s returns over the same time frame.
Citigroup has outperformed the broader market but has lagged behind its peers due to concerns over regulatory scrutiny and potential legal issues stemming from past misconduct. Shares of Citigroup declined 5.1% after the company reported its Q3 earnings results on Oct.15. Its profit fell as its credit losses and reserves to cover bad loans increased. The company's cost of credit climbed to $2.7 billion from $1.8 billion in 2023.
For the current fiscal year, ending in December, analysts expect Citigroup’s EPS to grow 4.1% year over year to $5.87 on a diluted basis. The company's earnings surprise history is impressive. It beat the consensus estimate in all four quarters.
Among the 20 analysts covering C stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” and eight “Holds.”
This configuration has been almost consistent over the past month.
On Oct. 16, James Mitchell from Seaport Global reiterated a ‘Buy’ rating on Citigroup, with a price target of $75, implying a potential upside of 17.7% from current levels.
The mean price target is 72.83, representing a premium of 14.3% compared to C’s current price levels. The Street-high price target of $91 suggests an upside potential of 42.8%.
On the date of publication, Rashmi Kumari 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.
