On Thursday, Truist Securities expressed continued confidence in Citigroup (NYSE:C) shares, reiterating a Buy rating with a steady price target of $85.00. The firm's analysis suggests that Citigroup's earnings per share (EPS) estimates for the years 2025 and 2026 remain unchanged at $7.50 and $9.30 respectively.
The price target reflects approximately 9.1 times the projected 2026 EPS and nearly 0.9 times the year-end 2025 estimated tangible book value (TBV). Currently trading at $78.27 and near its 52-week high of $79.25, Citigroup appears slightly undervalued according to InvestingPro analysis, which offers comprehensive valuation metrics and 10+ additional insights.
The research firm's revenue estimate for Citigroup in 2025 is largely consistent with the previous forecast, at around $84 billion, which aligns with the midpoint of the management's updated guidance range of $83.5 to $84.5 billion. This represents a year-over-year increase of about 3.5%.
However, Truist Securities has adjusted its expectations to include higher noninterest expenses, estimated at roughly $53.8 billion, and a higher provision expense, projected at approximately $10.2 billion. These increases are expected to be balanced by a more aggressive share buyback strategy throughout the remainder of the year.
The bank, with its current market capitalization of $148 billion, has maintained dividend payments for 15 consecutive years, demonstrating consistent shareholder returns despite market fluctuations.
Looking ahead to 2026, Truist Securities anticipates Citigroup will face lower revenues, estimated at $87 billion, and a higher provision expense, around $10.6 billion, compared to previous models. These factors are anticipated to be counterbalanced by reduced noninterest expenses, projected at about $53 billion, and an intensified level of share repurchases.
The firm's forecast for Citigroup's return on tangible common equity (ROTCE) in 2026 stands at around 9.5%, which falls short of the management's updated target range of 10-11%. Despite this, the reiterated Buy rating and price target suggest a positive outlook for Citigroup's stock performance.
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