Citigroup Maintains Neutral Rating, PT Down to $28 from $30.

Citigroup Maintains Neutral Rating, PT Down to $28 from $30.

Citigroup Inc. (C) closed at $87.60 on July 2, 2025, marking a decline of 1.26% from the previous day. The stock's performance lagged behind the broader market, with the S&P 500, Dow, and Nasdaq experiencing losses of 0.79%, 0.94%, and 0.92%, respectively [1].

Over the past month, Citigroup's stock has appreciated by 13.37%, outpacing the Finance sector's gain of 4.61% and the S&P 500's gain of 5.22% [1]. Investors are eagerly awaiting the company's earnings report, scheduled for July 15, 2025. Analysts project earnings per share (EPS) to increase by 9.87% to $1.67, with revenue expected to rise by 3.92% to $20.93 billion [1].

Citigroup's full-year Zacks Consensus Estimates for 2025 are $7.33 per share and $83.95 billion in revenue, representing year-over-year changes of +23.19% and +3.47%, respectively [1]. The company's Zacks Rank is currently #3 (Hold), indicating a neutral outlook [1].

In terms of valuation, Citigroup is trading at a Forward P/E ratio of 12.11, which is a discount compared to the industry average Forward P/E of 16.39 [1]. The company's PEG ratio of 0.69 is also lower than the industry average of 1.37 [1].

Citigroup shares touched a new 52-week high of $88.82 during the previous trading session, reflecting investors' optimism following the company's successful passage of the Federal Reserve’s 2025 stress test [2]. The company has announced plans to increase its quarterly dividend by 7% to 60 cents per share, starting in the third quarter of 2025, subject to board approval [2].

The company has also initiated a $20 billion common stock repurchase program, with $1.75 billion worth of shares bought back in the first quarter of 2025 [2]. Citigroup's strong liquidity position, with $761 billion in cash and investments and $317.5 billion in total debt as of March 31, 2025, supports its capital distribution activities [2].

Citigroup is undertaking organizational realignment to simplify its governance structure and reduce expenses, which is expected to save $2-2.5 billion annually by 2026 [2]. The company has also announced plans to exit consumer banking operations in 14 markets, including Asia and EMEA, and has successfully exited from consumer banking operations in nine countries so far [2].

Investors should closely monitor Citigroup's performance in the upcoming quarters, as the company's strategic initiatives and strong financial position indicate promising prospects for growth.

References:
[1] https://www.nasdaq.com/articles/citigroup-c-falls-more-steeply-broader-market-what-investors-need-know
[2] https://finance.yahoo.com/news/citigroup-hits-52-week-high-161400914.html