Citigroup maintains Buy on Flagstar Financial, raises PT to $16.5.

Tuesday, Aug 26, 2025 12:16 pm ET1min read

Citigroup maintains Buy on Flagstar Financial, raises PT to $16.5.

Citigroup has maintained its "Buy" rating on Flagstar Financial (NYSE:FLG) while raising its price target to $16.5, according to a recent research note dated July 1, 2025 [1]. The investment bank's upgrade reflects a positive outlook on the company's financial prospects and growth opportunities.

Flagstar Financial operates as the bank holding company for Flagstar Bank, N.A., offering a range of banking products and services in the United States. The company's recent earnings results showed a quarterly EPS of ($0.14), missing the consensus estimate of ($0.12) [1]. Despite the shortfall, Citigroup's analysts believe the company's long-term fundamentals remain strong.

The investment bank's upgrade comes amid a mixed sentiment among analysts. While several firms have maintained or raised their ratings, others have downgraded their assessments. For instance, Wall Street Zen lowered its rating to "Sell" [1]. Nevertheless, Citigroup's optimism is supported by the company's recent dividend announcement, which includes a quarterly payout of $0.01 per share, reflecting an annualized yield of 0.3% [1].

Flagstar Financial's stock has experienced volatility, with a 1-year low of $8.56 and a 1-year high of $13.35. However, the company's market capitalization of $4.91 billion and a P/E ratio of -7.16 suggest a potential for growth and recovery [1]. The stock's 50-day and 200-day simple moving averages of $11.43 and $11.63, respectively, indicate a stable trend in recent months [1].

Institutional investors and hedge funds hold a significant portion of Flagstar Financial's stock, with 67.88% of the shares currently owned by these entities [1]. The company's strong institutional backing, coupled with Citigroup's positive outlook, may provide a boost to investor confidence.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-pnc-financial-services-group-inc-makes-new-288000-investment-in-flagstar-financial-inc-nyseflg-2025-08-17/

Citigroup maintains Buy on Flagstar Financial, raises PT to $16.5.

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