Stock price when the opinion was issued
Owns several US banks. The yield curve is steepening and the regulatory backdrop is now more favourable to the banks. The post-2008 safeguards have built huge capital in these banks and is starting to be released. Citi trades at a 24% discount to tangible book value which will compress and catch up to peers.
(Analysts’ price target is $90.30)Financial sector offers great promise, though it's reacted to current markets by pricing in a potential recession. Slower economic growth would not be good for banks. Absent a recession, with consumer confidence returning and unleashing M&A, the sector provides a good opportunity.
A less expensive choice further down the food chain from the likes of JPM.
Likes the valuation of 8x PE, and growing ~24%. Tailwinds from Trump administration with bank de-regulation. Benefiting from years of cleanup and cost cuts. Earnings up 21% in last quarter. Fixed income was up 8%, equities were up 23%.
Yes, the tape can toss you around if we go into a bear market. And yes, this name would sell off along with all the other banks. But at this price, with this level of growth, it's a really good bet on risk/reward. Yield is 3%.
He's trying to play a quiet offence when he's a bit scared of the markets and tariffs. Cheap, tethered, and insulated. Financials really get a bid from Trump -- tax cuts, less regulation, lots more M&A. Yield curve looking a lot better, upward sloping. Beat Q4, earnings up 40%. Investment banking and market revenue also up. Company's expecting ROE to improve to 10-11% in 2026. Trades under 9x. Very favourable risk/reward. Yield is 2.7%, decent.
(Analysts’ price target is $89.20)Reducing global presence by exiting unprofitable businesses is really helping earnings by lowering costs.