Citigroup Stock Price Could Reach $87: Argus Research
Citigroup Incorporated, one of the world’s largest financial institutions, has shown resilience amid restructuring and global economic challenges. With a 4Q24 EPS of $1.34, surpassing expectations, and a revised 2025 target price of $87, Citigroup continues to capitalize on its vast international footprint and diverse revenue streams. A newly authorized $20 billion share buyback program highlights management’s commitment to shareholder returns. While the firm’s long-term restructuring efforts aim to streamline operations and improve returns, challenges persist, including regulatory scrutiny and competition. Below, we examine Citigroup’s financial performance, growth initiatives, and actionable insights for investors.
Key Financial Metrics
| Metric | Value |
|---|---|
| Current Price | $78.27 |
| Target Price | $87.00 |
| 52-Week High | $79.25 |
| 52-Week Low | $50.51 |
| Dividend | $2.24 |
| Market Cap | $148.03 Billion |
| Return on Tangible Common Equity (2024) | 7.0% |
| Price-to-Earnings (P/E) Ratio | 10.7 |
Fourth-Quarter Highlights
Earnings Beat Expectations:
Citigroup reported a 4Q24 EPS of $1.34, exceeding analysts' expectations of $1.24.
Revenues rose by 12% to $19.6 billion, with investment banking fees driving growth.
Operational Efficiency Gains:
Adjusted expenses declined by 7%, reflecting savings from restructuring efforts.
Credit costs dropped by 26%, showcasing effective risk management.
Segment Performance:
Services: Revenues increased by 15%, primarily due to growth in securities services.
Markets: Revenue surged by 36%, driven by strong equity and fixed-income trading.
Banking: Revenues climbed by 27%, supported by robust investment banking activity.
Strategic Initiatives and Outlook
Restructuring and Streamlining:
Citigroup is undergoing a broad restructuring, focusing on five core segments: Services, Markets, Banking, Global Wealth, and U.S. Personal Banking.
The firm has divested non-core international businesses to enhance focus and reduce earnings volatility.
Shareholder-Friendly Policies:
The company announced a $20 billion share buyback program, emphasizing shareholder returns.
Dividend estimates for 2025 and 2026 are $2.32 and $2.50, respectively.
Growth Projections:
Management forecasts 2025 revenues of $83.5–$84.5 billion, up 3%-4% year-over-year.
A 2026 EPS estimate of $8.52 highlights continued earnings growth.
