JPMorgan Upgrades Citi to Overweight on Improving Profitability Outlook

Group 1 - JPMorgan upgraded Citigroup from Neutral to Overweight and raised its price target to $124 from $107, citing expectations for improving profitability driven by a solid economic backdrop and strong market activity [1] - Citigroup is positioned to benefit more than peers from favorable macro conditions due to its revenue mix, with ongoing transformation efforts expected to enhance returns [2] - Factors such as progress on regulatory consent orders, a declining efficiency ratio, reductions in stranded costs, and the continued drawdown of deferred tax assets are expected to support a steady improvement in Citigroup's profitability over time [2][3] Group 2 - These initiatives should drive returns on tangible common equity higher relative to peers [3]