- Wells Fargo, KBW raise price targets on Citi stock
- CEO Fraser leads a sweeping overhaul at Citi
- Citi’s valuation versus rivals remains attractive
Citigroup’s (C.N), opens new tab stock could double in value over the next three years as profits surge, expenses moderate, and the “most significant” reorganization in five decades improves management accountability, Wells Fargo analysts wrote in a note on Friday.
The third-largest U.S. lender is the brokerage’s “dominant pick” among large-cap banks under almost any scenario, barring a recession. The analysts raised their price target to $110 from $95, while maintaining an “overweight” rating.
Citi’s shares rose as much as 1.6% to $71.09. The vote of confidence marks a notable win for Citi CEO Jane Fraser, who has been looking to improve the bank’s profitability since taking the helm in 2021.
Wells Fargo’s Mike Mayo, known for his blunt critique of the banking industry’s missteps, praised Fraser’s sweeping overhaul in 2024 to cut costs and simplify the bank’s sprawling businesses.
“Investors seem to underappreciate… the improved management accountability after transition from 50 years of a global matrix structure to 5 lines of business,” the Citi bull said.
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