Opinions Brian Acker, CA
Citigroup Inc.CPAST TOP PICKJun 26, 2018
Brian Acker, CAStock price when the opinion was issued
As of Jun 05, 2026. Market Open.
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Fourth-largest US bank, with global footprint as well. Latest quarter beat on revenue, best in decades. Earnings up 56%. Hit profitability target ahead of schedule. Trades below book value.
If management keeps executing, the re-rating story has room. Higher interest rates are putting pressure on it right now.
Q4 EPS up 56%, wealth was the biggest driver, investment banking up 17%. PCLs are pretty tame. Still lots of room for improvement. See if you can get it ~$115.
Greg Newman
Still a turnaround story. CEO has been simplifying the business -- cutting costs and focusing on strongest franchises. Strong quarter, beat on revenue and earnings. Outperforming peers. Cheaper, with more upside potential (but more risk if turnaround stops working).
JPM is one of the largest US banks, the gold standard. Leading across all divisions. Consistently delivers some of the strongest returns in the industry. Just reported strong quarter, record trading revenue, earnings up 13%, revenue ahead of expectations. Pulled back on slightly higher expense guidance. Higher quality name, trades at a premium (for good reason).
She's sticking with JPM, but C is a reasonable choice if you like the turnaround angle.
It is a conglomerate bank and the most under-appreciated US bank. For the past many years it keeps getting knocked down after showing some strength. The new CEO is the first person to re-organize it. The money trading business provides liquidity transfer to every major corporation in the world. It is the only access for 90 or more companies and this is not replicable. It is a great business and has been building this for years. Other positives include improving margins. Buy 22 Hold 4 Sell 0
(Analysts’ price target is $43.03)
Richard FoglerMaybe a bit over its skis. Q4 was impressive, with earnings up 56%. Improving story, has come a long way. At tail end of divestitures, so global imprint is getting smaller. Macro concerns, as with all the banks.
Compound annual growth profile still 11%. Trading ~9x PE for 2028, a bit less for 2027. Don't buy on this spike, but look for $118.
Greg NewmanHe owns this and JPM. Bought Citi because it was so undervalued. It's come a long way, more left in the tank. Banks will do less well in a softer economy, but they're safer than ever.
US banking sector had a downdraft on worries of credit problems. But private credit issues aren't with the banks -- since 2008-2009, banks can't lend to those types of businesses.
Tim Regan
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Premium contentThis comeback story has ripped around 55% in the past 12 months compared to JP Morgan at 19% and Bank of America at 12%. It trades at a discount to book value and to peers, while its ROE is climbing. Last January, Citi reported 8% revenue growth, +35% EPS and +14% net interest income over the previous year. Growth is expected to continue. The private credit scare has hammered all U.S. banks in the last two months which opened a buying opportunity that endures, despite the recent recovery. Citi pays a robust 2.24% dividend yield. You don't need to wait for pullbacks to enter as the turnaround story continues.
It was up on the month before, better than the market. Today's headlines of a rumoured regional bank buy (Citi denies it), gives you an opportunity to buy.
Jim LebenthalIs up today and yesterday, both down days in the market. The financial did gangbusters last year, so it's okay that they pause this quarter in 2026. In private equity, he doesn't see a systemic credit problem. It's a matter of time before financials gaining their pace again.
Jim LebenthalLikes US large banks -- will continue to benefit from deregulation and a sturdy economy. Owns JPM, but likes both names.
On technicals C is holding above the 200-day MA, making it stronger than JPM which is falling a bit below. C also has a lower price-to-book. JPM probably has more earnings growth ahead.
It was an obvious turnaround stock. The CEO gave Citi more focus and reputation. It continues to evolve and trades at a discount to their book value.
Gordon Reid
(A Top Pick August 4, 2017. Down 4%). This rose to $80 in January and is down to 65.52 now. It is struggling at EBB-2, well below his model price ($73.97). The US stress tests will come out this week. He expects dividend increases, which is essential for this stock to move higher. The company pays only about 20% of its profits, compared to 40% at Royal Bank. So he expects a pop soon. However, he thinks that what is happening in Europe will affect American bank stock prices. The European banks are at multi-year lows. However, the large American banks are very well capitalized and in much better shape than the Europeans.