Citigroup

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% […]

The following is a summary of the Citigroup Inc. (C) Q4 2023 Earnings Call Transcript: Financial Performance: Negative EPS of $1.16 in Q4, primarily due to reserve build related to transfers and devaluation of the Argentine currency. Revenues fell short of expectations, failing to reach the $78 billion mark due to the same Argentine devaluation. Despite setbacks, CET1 ratio increased to 13.3%, tangible book value per share grew by 6% to $86.19 and $6 billion capital was returned to shareholders via dividends and buybacks. Q4 reported a net loss of $1.8 billion with a net loss per share of $1.16 on $17.4 billion of revenue. Full year revenue was at $77.1 billion and net income at about $13.1 billion yielding an RoTCE of 7.3%. Citigroup plans to reduce expenses to $51-$53 billion, leading to net run rate savings of $2-$2.5 billion in the medium term. Business Progress: Restructuring included cutting

Citigroup (C) reported a Q4 net loss Friday of $1.16 per diluted share swinging from earnings of $1.16 a year earlier. Analysts polled by Capital IQ expected earnings of $0.60. Revenue for the quarter ended Dec. 31 was $17.44 billion, down from $18.01 billion a year earlier. Analysts surveyed by Capital IQ expected $18.75 billion.

Slower spending by U.S. cardholders continued in 4Q, according to Citigroup. Citi says U.S. credit card spend volume was up 2% year-on-year, the same growth rate as in the previous quarter. That is a slowdown from in late 2022 and early 2023, when credit card volumes grew 7% from a year earlier, according to Citi results. Weaker spending growth among cardholders is a sign of slumping spending by consumers amid higher interest rates and dwindling pandemic-era savings.

Citigroup (NYSE:C) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/09/2024 12.13% HSBC → $61 Upgrades Hold → Buy 01/03/2024 6.62% Wolfe Research → $58 Upgrades Peer Perform → Outperform 01/02/2024 15.81% Barclays $59 → $63 Maintains Equal-Weight 12/19/2023 -4.41% Goldman Sachs $47 → $52 Maintains Neutral 12/01/2023 -13.6% Goldman Sachs $41 → $47 Maintains Neutral 11/16/2023 56.25% Oppenheimer $82 → $85 Maintains Outperform 10/16/2023 -17.28% Piper Sandler $47 → $45 Maintains Neutral 10/16/2023 21.32% BMO Capital $61 → $66 Maintains Outperform 10/16/2023 50.74% Oppenheimer $81 → $82 Maintains Outperform 10/03/2023 -20.96% Morgan Stanley $45 → $43 Maintains Underweight 10/02/2023 -24.63% Goldman Sachs $47 → $41 Maintains Neutral 09/26/2023 48.9% Oppenheimer $85 → $81 Maintains Outperform 09/20/2023 -13.6% RBC Capital $51 → $47 Maintains Outperform 09/15/2023 -13.6% Piper Sandler $50 → $47 Maintains Neutral 09/07/2023 -20.96% HSBC → $43 Initiates Coverage On

Citigroup (NYSE:C) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/03/2024 8.88% Wolfe Research → $58 Upgrades Peer Perform → Outperform 01/02/2024 18.27% Barclays $59 → $63 Maintains Equal-Weight 12/19/2023 -2.38% Goldman Sachs $47 → $52 Maintains Neutral 12/01/2023 -11.77% Goldman Sachs $41 → $47 Maintains Neutral 11/16/2023 59.56% Oppenheimer $82 → $85 Maintains Outperform 10/16/2023 -15.52% Piper Sandler $47 → $45 Maintains Neutral 10/16/2023 23.9% BMO Capital $61 → $66 Maintains Outperform 10/16/2023 53.93% Oppenheimer $81 → $82 Maintains Outperform 10/03/2023 -19.28% Morgan Stanley $45 → $43 Maintains Underweight 10/02/2023 -23.03% Goldman Sachs $47 → $41 Maintains Neutral 09/26/2023 52.06% Oppenheimer $85 → $81 Maintains Outperform 09/20/2023 -11.77% RBC Capital $51 → $47 Maintains Outperform 09/15/2023 -11.77% Piper Sandler $50 → $47 Maintains Neutral 09/07/2023 -19.28% HSBC → $43 Initiates Coverage On → Hold 08/23/2023 3.25% Wells Fargo $60 → $55

Wells Fargo gets more constructive on Citigroup, saying it expects the bank’s shares to double to $100+ over three years and calling the stock its top large-cap bank pick for 2024 and a signature pick. In a research note, Wells says Citi’s management delayering, exit from 14 non-US consumer markets and transition from dozens of universal banks to five lines of business should make the bank more simple and profitable. Wells says it expects Citi’s EPS will double from an estimated $5 in 2023 to $10 in 2026, driven by efficiency, stock buybacks and revenue growth. Wells, with an overweight rating on Citi shares, lifts its one-year price target on the stock to $70 from $60.

Citigroup (NYSE:C) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/02/2024 22.33% Barclays $59 → $63 Maintains Equal-Weight 12/19/2023 0.97% Goldman Sachs $47 → $52 Maintains Neutral 12/01/2023 -8.74% Goldman Sachs $41 → $47 Maintains Neutral 11/16/2023 65.05% Oppenheimer $82 → $85 Maintains Outperform 10/16/2023 -12.62% Piper Sandler $47 → $45 Maintains Neutral 10/16/2023 28.16% BMO Capital $61 → $66 Maintains Outperform 10/16/2023 59.22% Oppenheimer $81 → $82 Maintains Outperform 10/03/2023 -16.5% Morgan Stanley $45 → $43 Maintains Underweight 10/02/2023 -20.39% Goldman Sachs $47 → $41 Maintains Neutral 09/26/2023 57.28% Oppenheimer $85 → $81 Maintains Outperform 09/20/2023 -8.74% RBC Capital $51 → $47 Maintains Outperform 09/15/2023 -8.74% Piper Sandler $50 → $47 Maintains Neutral 09/07/2023 -16.5% HSBC → $43 Initiates Coverage On → Hold 08/23/2023 6.8% Wells Fargo $60 → $55 Maintains Overweight 08/18/2023 65.05% Oppenheimer $88 → $85 Maintains Outperform 07/18/2023

Citigroup (NYSE:C) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 12/19/2023 4.17% Goldman Sachs $47 → $52 Maintains Neutral 12/01/2023 -5.85% Goldman Sachs $41 → $47 Maintains Neutral 11/16/2023 70.27% Oppenheimer $82 → $85 Maintains Outperform 10/16/2023 -9.86% Piper Sandler $47 → $45 Maintains Neutral 10/16/2023 32.21% BMO Capital $61 → $66 Maintains Outperform 10/16/2023 64.26% Oppenheimer $81 → $82 Maintains Outperform 10/03/2023 -13.86% Morgan Stanley $45 → $43 Maintains Underweight 10/02/2023 -17.87% Goldman Sachs $47 → $41 Maintains Neutral 09/26/2023 62.26% Oppenheimer $85 → $81 Maintains Outperform 09/20/2023 -5.85% RBC Capital $51 → $47 Maintains Outperform 09/15/2023 -5.85% Piper Sandler $50 → $47 Maintains Neutral 09/07/2023 -13.86% HSBC → $43 Initiates Coverage On → Hold 08/23/2023 10.18% Wells Fargo $60 → $55 Maintains Overweight 08/18/2023 70.27% Oppenheimer $88 → $85 Maintains Outperform 07/18/2023 -9.86% Morgan Stanley $45 → $45 Reiterates Underweight

Goldman Sachs analyst Richard Ramsden maintains Citigroup (NYSE:C) with a Neutral and raises the price target from $47 to $52.

Oppenheimer analyst Chris Kotowski maintains Citigroup (NYSE:C) with a Outperform and raises the price target from $81 to $82.

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%.