How Analysts Rate Citigroup and Wells Fargo



Wall Street ratings

Wall Street analysts have been bullish on shares of Wells Fargo on prospects of an interest rate hike. In a Bloomberg survey of 37 analysts, 19 analysts have assigned a “buy” rating to Wells Fargo, while 13 have rated it a “hold.” The stock received five sell ratings.

In comparison, Citigroup has received a higher number of buy ratings. 25 analysts have assigned “buy” ratings to Citi, while seven have rated it as a “hold.” The stock hasn’t received any “sell” ratings. Recently, Capital Advisors CEO, Keith Goddard, shared a positive outlook on Citigroup. He estimates that Citigroup has upside potential of 29% over the next 12 months, and that current valuations (BAC) present a lucrative entry point for long-term investors.

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Target price and upside potential

Wells Fargo (WFC) has a consensus target price of $53.14, resulting in a one-year upside potential of 9.5%. Comparatively, Citigroup has a consensus target price of $53.85 for the next 12-month period, implying a return potential of 14%. Wall Street analysts forecast more upside for Citigroup’s stock for the next one-year horizon.

Investors looking for ETF exposure to Wells Fargo and Citigroup could invest in the iShares U.S. Financial Services ETF (IYF) or the SPDR Financial Select Sector ETF (XLF).


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