CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target by $11 to $65 (consensus $61) on a forward P/E of 10.8x, which is in line with its five-year historic average. Our target would still be a 20% discount to net tangible book value (NTBV) of $81.65, while direct peers trade at par or a premium to NTBV. We see C executing its strategy to streamline the bank and drive growth in areas where it is a market leader. C has a leading franchise in corporate treasury services that is realizing recurring fee revenue and new account growth, global banking for institutions, and personal banking outside the U.S. Management has targets for operating efficiency with $1.5B in restructuring and severance costs in 2023 and another $700M to $1.0B in 2024, which should drive profitability and free cash flow. We keep our EPS estimates unchanged at $6.00 in 2024 and $7.05 in 2025. A risk to our rating would be a steep decline in rates, given 70.0% of 2024 total revenue came from net interest income. Ahead, we see higher noninterest income growth and wider margins.