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 $2 to $67 on a forward P/E of 10.8x, below the 11.5x peer average. Our target is a 23% discount to net tangible book value (NTBV) at $86.67, while peers trade at a premium to NTBV. This speaks to C in a multi-year transformation with new leadership that we are confident will succeed. We lift our 2024 EPS view $0.20 to $6.20 and 2025’s $0.20 to $7.25. C reported Q1 EPS of $1.58, a $0.31 earnings beat to the consensus estimate, and $21.1B revenue was $1.1B higher than consensus. C posted 1% Y/Y NII growth and loans were +3%, while deposits were -2%. Services (Treasury and Trade solutions) had +8% fee revenue with North America +3% and International +10%. Markets (or trading) saw -7% revenue with equity markets +5% and fixed income markets -10%. Banking reported +49% revenue growth with investment banking fees +32%, M&A -17%, equity underwriting +57%, and debt underwriting +62%. Personal Banking revenue was +10% Y/Y with branded cards +7%. Wealth revenue was -4% Y/Y, hurt by lower NII at -13%.