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Citizens Financial Group (CFG) Valuation Check As Barclays Upgrade And EPS Growth Outlook Lift Sentiment

Simply Wall St · 4d ago

Citizens Financial Group (CFG) is back in focus after Barclays upgraded the stock, citing expectations around net interest margin trends, the buildout of its Private Bank, and ongoing transformation efforts.

See our latest analysis for Citizens Financial Group.

The Barclays upgrade lands on top of a strong run, with Citizens Financial Group’s share price at $62.14 and a 90 day share price return of 19.48%. The 1 year total shareholder return of 44.35% and 5 year total shareholder return of 90.74% point to momentum that has been building rather than fading.

If you are looking beyond traditional banks after this move, it could be a useful moment to broaden your research and check out fast growing stocks with high insider ownership.

With the shares already up sharply and trading at $62.14 against an average analyst target of $65.93 and an estimated intrinsic value that implies a 37% discount, the key question is whether Citizens is still mispriced or if the market is already accounting for future growth.

Most Popular Narrative: 10% Undervalued

The most followed narrative pegs Citizens Financial Group’s fair value at about $62.23, almost exactly in line with the last close of $62.14. This raises an interesting question about how much upside is left in the current setup.

The analysts have a consensus price target of $56.45 for Citizens Financial Group based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $65.0, and the most bearish reporting a price target of just $51.0.

Read the complete narrative.

Curious how a higher profit margin profile, double digit revenue growth assumptions, and a trimmed earnings multiple still translate into an undervaluation call? The full narrative spells out the math behind that tension.

Result: Fair Value of $62.23 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still real swing factors here, including Citizens’ commercial real estate exposure, as well as the risk that digital investments lag bigger peers and faster moving competitors.

Find out about the key risks to this Citizens Financial Group narrative.

Another View on Valuation

Those fair value narratives sit alongside a simpler yardstick. Citizens trades on a P/E of 17x versus 12.8x for peers and 11.8x for the wider US banks group, while our fair ratio is 17.9x. So is the current price a premium you are comfortable paying, or a signal to be cautious?

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:CFG P/E Ratio as at Jan 2026
NYSE:CFG P/E Ratio as at Jan 2026

Build Your Own Citizens Financial Group Narrative

If you look at the numbers and reach a different conclusion, or prefer to test your own view against the data, you can build a custom Citizens Financial Group story in a few minutes with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Citizens Financial Group.

Ready To Find Your Next Idea?

If Citizens Financial Group is on your radar, do not stop there. Cast a wider net now so you are not looking back at missed opportunities.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.