RBC Capital Believes Expense Discipline and Modest Revenue Growth Driving Citigroup (C)

Group 1 - Citigroup Inc. is considered one of the best financial stocks to buy, with RBC Capital reaffirming an Outperform rating and a $121 price target following solid quarterly results [1] - The company reported adjusted earnings per share of $1.81, surpassing analysts' expectations of $1.70 [1] - Management expressed confidence in achieving medium-term goals of 10-11% Return on Tangible Common Equity (ROTCE) by 2026, up from 7.7% in 2025 [2] Group 2 - The Services division of Citigroup is the strongest segment, achieving a 36% ROTCE, followed by U.S. Personal Banking at 14% and Banking at 13% [2] - RBC Capital anticipates that moderate revenue growth and a strong focus on expense management will be key drivers for Citigroup to meet its financial objectives, emphasizing the importance of execution [3] - Citigroup operates as a diversified financial services holding company, providing a range of products and services across five segments: Services, Markets, Banking, US Personal Banking, and Wealth [4]