Wells Fargo Calls Citi a Top Pick, Predicts Stock Will Double
Wells Fargo analysts believe Citigroup’s stock could double in three years, naming it their top choice in the large-cap banking sector.
Citigroup, Wells Fargo, Banking, Stock Market, Finance, New York, USA
Analysts are buzzing about how CEO Jane Fraser is shaking things up at Citi. She’s been working hard to cut costs and streamline operations. Part of that plan includes cutting around 20,000 jobs by 2026.
Mike Mayo, a Citi supporter, mentioned that this shift from losing value to creating it is a big deal for the stock’s future. Wells Fargo even bumped up their price target for Citi from $95 to $110, which is a solid vote of confidence.
In morning trading, Citi’s shares went up by 1.2%, hitting $70.78. They’re now operating under a new structure, which is all part of Fraser’s plan to make things more efficient and boost profits.
Analysts see 2024 as a key year for Citi, suggesting that these changes could really help the bank. Other analysts, like those at KBW, also raised their price target for Citi, calling it one of their top picks for 2025.
Citi might see a boost from more activity in capital markets, and its current valuation looks pretty attractive compared to its competitors. With a price-to-book ratio of 0.69, it’s considered undervalued, especially when you compare it to JPMorgan Chase and Bank of America.
Investors are definitely keeping an eye on Citi, especially with their upcoming earnings report in mid-January. Everyone’s curious to hear about their growth in areas like wealth management and investment banking for 2025.