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Providence, Rhode Island-based Citizens Financial Group, Inc. (CFG) provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions. Valued at $18 billion by market cap, CFG is among the oldest and largest financial services firms in the U.S., offering consumer and commercial loans, mortgage finance, deposit products, retail and commercial banking, asset management, and trust services.
Shares of this banking company have slightly outperformed the broader market over the past year. CFG has gained 28.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 18.2%. In 2024, CFG stock is up 20%, surpassing the SPX’s 11.5% rise on a YTD basis.
Zooming in further, CFG’s outperformance looks more pronounced when compared to the SPDR S&P Regional Banking ETF (KRE). The exchange-traded fund has gained about 9.6% over the past year. Moreover, CFG’s double-digit gains on a YTD basis outshine the ETF’s 1.2% returns over the same time frame.
CFG’s impressive price performance over the past year can be attributed to a rise in non-interest income and cost-saving measures. The strong capital position and growth in bond underwriting and loan syndication fees have also contributed to the overall growth. Additionally, stable deposit growth, efficient cost management, and satisfactory credit performance have all played a role in driving the company's performance.
On Jul. 17, CFG stock closed up more than 3% after reporting its Q2 earnings results. Its EPS of $0.78 missed Wall Street’s expectations of $0.79. Its adjusted revenue was $1.96 billion, topping forecasts of $1.95 billion.
For the current fiscal year, ending in December, analysts expect Citizens Financial’s EPS to grow 3.5% to $3.24 on a diluted basis. However, the company’s earnings surprise history is concerning as it has missed the consensus estimate in each of the last four quarters.
Among the 21 analysts covering CFG stock, the overall consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” and 10 “Holds.”
This configuration has been consistent over the past month.
On Aug. 8, Barclays PLC (BCS) analyst Jason Goldberg assigned CFG a “Hold” rating and set a price target of $40.
The mean price target of $44.33 represents a premium of 11.5% to CFG’s current price levels. The Street-high price target of $50 suggests an upside potential of 25.7%.
On the date of publication, Neha Panjwani 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.
