4. QUALITY EDUCATION

Citigroup gains as Wells Fargo raises PT, sees stock doubling over 3 years

Written by Amanda
BUZZ-Citigroup gains as Wells Fargo raises PT, sees stock doubling over 3 years

** Citigroup C.N shares up 2.8% at $52.88 in afternoon trading as Wells Fargo raises PT to $70 from $60 and says it expects stock to double to $100+ over 3 years

** Shares hits 11-month high as brokerage chooses Citi as its top large-cap bank pick for 2024; Maintains “overweight” rating

** “We disagree with the many investors who say that Citi is unmanageable, unquantifiable, and/ or un-investable” – brokerage

** Wells Fargo’s new PT implies a ~36.1% upside to stock’s last close; Adds Citi’s “metamorphosis” should make it simple and profitable

** Citigroup under CEO Jane Fraser last year announced a reorganization that seeks to simplify Wall Street’s most global bank and bring its profitability more in line with rivals
** Under the plan, Citi is cutting jobs, trimming management layers, and exiting consumer businesses in several non-core international markets

** Basel III, which proposes stricter bank capital requirements, could get fully withdrawn in some scenarios such as depending on the U.S. election next fall – Wells Fargo

** Shares of the bank gained 13.73% in 2023 vs a 24.23% gain in the benchmark S&P 500 .SPX index

Reporting by Arasu Kannagi Basil in Bengaluru

Source: xm.com

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Amanda

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