Opinions Brian Acker, CA
Citigroup Inc.CPAST TOP PICKJun 26, 2018
Brian Acker, CAStock price when the opinion was issued
As of Oct 27, 2026. Market Open.
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It's always been cheap since the 2010 recession, but wasn't growing that well, not until the new CEO a few years ago. ROE and ROC is now growing, and is trading at 10x. PE. He targets $200 in three years. They're firing on all cylinders. Pays a dividend, too.
(Analysts’ price target is $151.13)
Tim Regan
It just reported. The CEO has turned around the company the last few years and shares have rallied like crazy. Citi posted a clean top and bottom line beat with earnings up 27% year over year. Net interest income beat, but non-interest income missed. This was Citi's best Q3 revenue in a decade, and they raised their full-year net interest guidance. But shares fell 5.6% yesterday and down 1.8% today. Can't explain the decline, but he suspects it was punished for its outperformance recently. He still believes in Citi's turnaround.
Latest quarter very strong -- record revenue driven by investment banking, trading, and treasury services. What she likes most is the turnaround. Becoming a leaner, more profitable bank. Raised dividend by 12%, major share buybacks. She sees 18% upside. Ranks 8/10 on fundamentals. Yield is 2.02%.
(Analysts’ price target is $155.00)
Brianne GardnerLikes for the long term. Big selloff today is hitting all financials, probably something to do with this afternoon's Fed decision. Good holding long term. Valuations are getting up there, but still making a lot of money.
Tim ReganThe company has turned around and is approaching its better-managed peers. The CEO has done a fantastic job. The stock could be higher, but they are investing in their future. The turnaround is going well.
Julien Nono-WomdimThe US banks are only okay. They have around 7% total returns. Citi is the turnaround story that's finally turning around. BAC is a more stable. Citi has a more global footprint. He wouldn't buy either. Valuations are a little rich. You will get stable returns, though misses at earnings from high expectations. Are better opportunities elsewhere.
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 Fogler
(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.