CFRA Keeps Buy Opinion On Shares Of Citigroup Inc.

We raise our 12-month target to $71 from $67 on a wider P/E multiple of 11.5x our 2024 EPS estimate, below the 12.5x peer average. We still value C as one of the few large U.S. banks trading below net tangible book value (NTBV) – C’s at $81.65, currently trading at a 23% discount to NTBV. We keep our EPS at $6.20 in 2024 and $7.25 in 2025. C is executing on its new strategy and we like how the bank will be positioned for growth across institutional markets. C has leading franchises in corporate treasury services, technology platforms, and expanded global wealth. We think C can execute and close the gap on price to NTBV, driven by the Services segment (treasury and trade solutions), which had 8% fee revenue growth in Q1 comps, and a continued upturn in Banking, which includes investment banking fees from all areas. Net interest income rose only 1% Y/Y in Q1. Management is streamlining the bank, especially the planned exit of consumer banking in Mexico in 2025 and the disposition of 14 non-U.S. consumer banks.

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