BUZZ-Citigroup PT raised at Wells Fargo as reorganization nears end

Reuters · 03/25 10:56
BUZZ-Citigroup PT raised at Wells Fargo as reorganization end

** Wells Fargo raises its price target on Citigroup C.N to $80 from $70, implying an upside of 31.5%

** This week's likely on-time completion of Citi's reorganization increases confidence on bank achieving 10% return on tangible equity (ROTCE) in 2026 estimate and stock upside, brokerage says, maintains "overweight" rating

** "To us, the moves enhance an unprecedented Citi line of business (LOB) emphasis away from its legacy matrix, which should aid transparency, accountability, and agility," analyst Mike Mayo writes

** Brokerage adds organization simplification, which took roughly 7 months to complete, should provide more evidence that Citi "can meet its targets and do so methodically"

** Citi CEO Jane Fraser announced a sweeping reorganization last year to simplify the bank's structure after divesting from -core markets

** The bank has set the target of lowering its headcount globally by 20,000 or roughly 8% over the two years

** Earlier this year, Wells Fargo analysts said they expect Citi's stock to double to $100+ over 3 years

** As of last close, Citi's stock had risen ~18% YTD compared with a 9.7% increase in the benchmark S&P 500 index .SPX

(Reporting by Manya Saini in Bengaluru)