Citigroup Inc. C will release earnings results for the second quarter, before the opening bell on Tuesday, July 15. Considering buying C stock? Here's what analysts think: Read This Next: Photo via Shutterstock Loading... On June 16, Citigroup announced $650 million redemption of floating rate notes due 2026. Citigroup shares gained 2.3% to close at $88.72 on Thursday. Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, an ...

Core Insights - Citigroup has seen a significant stock price increase of over 75% in the last five years, trading at over $88 per share, a level not reached since 2008 [1] - The bank trades at approximately 97% of its tangible book value (TBV), indicating a discount compared to peers, despite growth in TBV per share [2] Transformation Strategy - Under CEO Jane Fraser's leadership since 2021, Citigroup initiated a transformation plan focusing on divesting inefficient international consumer franchises and capitalizing on higher-returning businesses [3] - The divestiture of Banamex, Citigroup's profitable Mexican consumer banking operation, is part of this strategy to free up capital for investment in areas like investment banking and wealth management [3][6] - The transformation aims to enhance returns, with a target of achieving a 10% to 11% return on tangible common equity (ROTCE) by 2026, up from a 6.1% ROTCE in 2024 [8][10] Future Expectations - Citigroup is expected to complete its international divestitures, including the IPO of Banamex, within the next three years [10] - The bank's current TBV per share is about $90, and a stock price of $145 would require a valuation of 1.5 times TBV, which remains below peers [11] - There is potential for Citigroup to consider whole bank acquisitions to enhance its U.S. deposit presence once it achieves a better valuation [12]

🇸🇬 LATEST: Singapore wraps its largest $22B money laundering case, fining 9 banks including UBS and Citi a total of $21.5M. https://t.co/v9FIuW9BSV ...

Core Viewpoint - The earnings outlook for major banks such as JPMorgan, Wells Fargo, and Citigroup is subdued despite passing stress tests, with growth hindered by weak demand in conventional and investment banking [2][3]. Group 1: Earnings Expectations - JPMorgan's Q2 earnings are expected to decline by -5.6% with revenues down -13.4% [3] - Citigroup and Wells Fargo are projected to see Q2 earnings decrease by -3.2% and -6.8% respectively [3] - The Zacks Investment Brokers & Managers industry, including these banks, anticipates a total Q2 earnings drop of -2.8% on -0.6% lower revenues [3] Group 2: Sector Performance - The overall Finance sector is expected to see Q2 earnings increase by +8.2% on +3.9% higher revenues [3] - Total S&P 500 earnings for the June quarter are projected to rise by +5.0% with +4.0% higher revenues [5] - Three sectors are expected to achieve double-digit earnings growth in Q2: Aerospace (+15.2%), Tech (+12.1%), and Consumer Discretionary (+106.1%) [5] Group 3: Market Performance - Despite weak earnings growth expectations, stocks of JPMorgan, Citigroup, and Wells Fargo have performed well in the market, likely due to anticipated capital returns and hopes for improved earnings growth [6] - The market's recovery from April lows suggests that participants may not view tariff uncertainties as a significant threat, although there is skepticism regarding this outlook [23]

Zambia’s kwacha, Africa's second best performing currency, may be heading for a prolonged period of appreciation if its correlation with the copper price is restored, Citi says https://t.co/LP2iuEYkwT ...

Core Insights - Citigroup Inc. has successfully passed the Federal Reserve's 2025 stress test, allowing the bank to return excess capital to shareholders through dividends and share repurchases, indicating strong capital resilience during severe economic downturns [1][2][9]. Capital and Financial Health - Citigroup's common equity tier 1 (CET1) capital ratio is projected at 10.4%, significantly above the minimum requirement of 4.5%, reflecting robust capital health [3][8]. - The bank currently offers a dividend yield of 2.65%, higher than competitors Bank of America and Wells Fargo, and has a payout ratio of 35% [4][8]. - Citigroup's board has authorized a $20 billion share repurchase plan, with $1.75 billion already repurchased in Q1 2025, indicating confidence in its financial position [7][8]. Business Restructuring and Operational Efficiency - Citigroup is undergoing a significant restructuring, including a plan to eliminate 20,000 jobs to streamline operations and reduce costs [10][11]. - The bank aims to lower its expenses to below $53.4 billion in 2025, down from $53.9 billion in 2024 [12]. - Citigroup is focusing on core operations by exiting non-core markets, including consumer banking in 14 markets across Asia and EMEA, to allocate capital towards higher-return segments [13][15]. Revenue and Market Performance - Citigroup anticipates improved performance in its Markets and Banking segments, projecting mid to high-single-digit revenue growth year-over-year for Markets and mid-single-digit growth for Investment Banking [16]. - The bank's net interest income (NII) for Q1 2025 was reported at $14 billion, a 4% increase from the previous year, benefiting from lower funding costs [17][19]. - Citigroup shares have outperformed the industry, gaining 21.7% over the past six months, compared to 17.7% for the industry and lower gains for peers [20]. Valuation Analysis - Citigroup is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 10.13X, below the industry average of 14.53X, indicating it is undervalued relative to peers [22][24]. - The bank's stock is seen as a potential value opportunity for long-term investors, despite near-term uncertainties due to ongoing restructuring and macroeconomic challenges [26][30].

Group 1 - Citigroup is identified as the cheapest large U.S. bank based on the price-to-book value multiple [1] - The low valuation of Citigroup is attributed to structural factors affecting its profile [1] Group 2 - The author has extensive experience in the financial sector, specifically in portfolio management [1]

Group 1 - The election of President Trump has initiated a new era for larger banks, particularly Citigroup, Inc. [1] - The banking sector has been experiencing increasing regulatory pressures since the financial crisis [1] Group 2 - The article emphasizes the importance of positioning in undervalued stocks that are mispriced by the market [1]

Core Viewpoint - Bank of America Securities (BofA) maintains a Buy rating on Citigroup, Inc., increasing the price forecast from $89 to $100, indicating confidence in the company's ongoing transformation and potential for profitability improvement [1][4]. Group 1: Company Transformation - Citigroup's overhaul is recognized as one of the most challenging in the corporate sector, but recent strategic moves such as global consumer exits, de-risking, technology upgrades, and new hires suggest that CEO Jane Fraser's vision from 2022 may be on track for success [1]. - All five business segments of Citigroup have demonstrated improved profitability over the past year, reflecting the effectiveness of the company's strategic initiatives [1]. Group 2: Financial Targets and Performance - The wealth and banking segments, now under new leadership, are targeting a Return on Tangible Common Equity (ROTCE) of 15%-20% by 2026, an increase from an estimated ~10% in FY25, indicating significant growth potential [2]. - Citigroup is expected to sustainably exceed the 10% consolidated ROTCE mark starting in 2026, supported by a low base for growth [2]. Group 3: Share Repurchases and Economic Outlook - Share repurchases are anticipated to accelerate in the second half of 2025, with BofA Securities forecasting $2.4 billion per quarter, while consensus estimates are at $2.1 billion [3]. - A more stable regulatory environment is expected to provide management with greater cost flexibility, which could enhance profitability [3]. - BofA's economic outlook predicts stronger GDP growth, potentially reducing credit costs in 2026, based on a projected 5.1% weighted average unemployment rate [3]. Group 4: Earnings Estimates and Valuation - BofA Securities has raised its FY26 EPS estimate from $9.85 to $10 and increased the price target from $89 to $100, suggesting a valuation of 10x 2026 P/E and 0.95x forward P/TBV, reflecting improved visibility into ROTCE [4]. - The 2026 consensus forecast assumes Citigroup will only meet the lower end of its strategic goals, indicating potential for upward revisions in future estimates [3][4].

As stocks continue to rise, we talked about this. The S&P is just like 17 points off a record high right now. And my next guest says the underlying trend remains positive for equities, including for the large caps, which she likes here.Kate Morris, CIO at City Wealth. Kate, anything about the Fed here affect your your view on stocks. Look, weak dollar is certainly got to be a boost, although maybe it's not about the Fed, as Muhammad just said.Yeah. Well, look, I think the equity market is looking past anyth ...