CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our target $3 to $48, applying a 8.0x forward P/E of our 2024 EPS view, below the 8.5x three-year historic average. We lift our 2023 EPS $0.20 to $6.20 and 2024’s $0.10 to $6.00. C reported Q3 EPS of $1.63, a $0.41 consensus beat, and realized +10% Y/Y growth (1% Q/Q) in net interest income (NII), with higher volumes and net interest earning an asset yield of 2.49% vs. 1.68% (2.48%). Non-NII businesses were +6% Y/Y, with higher commission (+3%) and principal transaction fees (+15%). The Institutional Clients Group was +12% (53% of total revenues), Personal Banking and Wealth Management (PBWM) +10% (34%), Legacy Franchises -13% (11%), and Corporate/Other +67% (2%). In PBWM, branded cards revenue was +12%, retail services +21%, and retail banking -3%. Investment Banking realized +34% Y/Y revenue growth while equity markets traded -3% and FICC +14%. C is more capital efficient with the sale of non-U.S. consumer banks, and its share price trades at a 51% discount to the $86.90 net tangible book value.