Citigroup's Strong Performance Sparks Analyst Upgrades

Author: Thomas Cooper Updated: 10-17-2025 01:13 PM

Citigroup's Positive Earnings Report Excites Analysts

Keefe, Bruyette & Woods analyst David Konrad has made waves in the financial sector by raising the price target for Citigroup, Inc. (NYSE: C) from $112 to $118. This change reflects Konrad's confidence in Citigroup's ongoing turnaround efforts, especially after their recent quarterly earnings exceeded expectations.

Recent Earnings Highlights

This week, Citigroup announced third-quarter revenue of $22.09 billion, marking a remarkable 9% growth compared to the previous year. This revenue performance not only surpassed analysts' expectations but also showcased the bank's robust recovery strategy, driven by strong performances from its Markets, U.S. Personal Banking, and Investment Banking segments.

Citigroup has confidently adjusted its fiscal 2025 revenue forecast to exceed its previous estimate of $84 billion. This anticipation comes from a positive outlook and industry analysis suggesting significant revenue streams, with analysts estimating around $84.95 billion for the same period.

Analyst's Insights on Citigroup's Progress

According to Konrad, Citigroup's turnaround story is steadily progressing, with a return on tangible common equity (ROTCE) target of 10% to 11% for 2026 becoming increasingly attainable due to consistent business advancements and a favorable regulatory environment. The upcoming 2026 Investor Day is expected to refocus investor attention towards Citigroup's ambitious ROTCE goal of 11% to 12%. These insights bolster investor confidence as the bank continues to make significant strides.

Revisions to Earnings Predictions

In light of the third-quarter results, Konrad has revised the earnings per share (EPS) estimates upward by 5% to $8.10 for 2025, up from the previous $7.74. Additionally, EPS estimates for 2026 have been increased by 2% to $9.90, while those for 2027 are raised by 3% to $11.90, reflecting a more optimistic view on revenue growth.

Investors looking to gain exposure to Citigroup can consider investing through the First Trust Nasdaq Bank ETF (NASDAQ: FTXO), which includes a range of banking stocks and offers diversified investment opportunities.

Citigroup's Current Market Performance

As of the latest updates, shares of Citigroup have shown positive momentum, rising by 1.44% to reach $97.65. This increase reflects investor optimism in light of the strong earnings report and the upward trajectory of the company as it implements its strategic initiatives.

Frequently Asked Questions

What did the recent earnings report reveal for Citigroup?

The report showed a revenue increase of 9% year over year, totaling $22.09 billion, which exceeded expectations.

How has the analyst adjusted the price target for Citigroup?

Analyst David Konrad raised the price target for Citigroup from $112 to $118 based on recent performance and future outlook.

What are the expectations for Citigroup's fiscal 2025 revenue?

Citigroup expects revenue to exceed $84 billion, signaling continued growth based on current earnings trends.

What is the ROTCE target for Citigroup by 2026?

Citigroup aims for a return on tangible common equity target of 10% to 11% by 2026.

How are the EPS estimates for Citigroup changing?

The analyst has increased EPS estimates to $8.10 for 2025, $9.90 for 2026, and $11.90 for 2027 following the recent strong earnings report.

About The Author

Hello, I'm Thomas Cooper, a financial expert and writer passionate about helping people understand and navigate the financial world. Having a solid financial background and a lot of experience, my area of expertise is simplifying difficult financial ideas into useful, understandable guidance. My goal with my writings and blog entries is to provide you the information and resources you need to make wise financial choices.

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