CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our target $6 to $54, a 9.0x forward P/E of our 2024 EPS view, in line with the three-year historic average. Our 2024 EPS is unchanged at $6.00 and we set 2025’s at $7.05. C posted Q4 adj. EPS of $0.84, a $0.09 consensus beat, and realized +4% Y/Y growth (flat Q/Q) in net interest income (NII), with higher volumes and net interest earning an asset yield of 2.46% vs. 2.39% (2.49%). Non-NII businesses were -24% Y/Y, with higher commission (+10%) and principal transaction fees (-39%). New segment reporting was set for C’s new strategy. Banking reported +22% revenue growth, with investment banking fees +16%, M&A +11%, equity underwriting -17%, and debt underwriting +43%. Markets (or trading) saw +1% fee revenue with equity markets +9% and fixed income markets -25%. Services (treasury and trade solutions) had +9% fee revenue, with similar growth in all regions. Personal Banking (or consumer) realized +9% Y/Y non-interest income, with branded cards +10%. Wealth +13% in non-interest income offset by NII -10%.