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What Wall Street Recommends for Citigroup after Q4 Results

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Jan. 15 2019, Updated 11:15 a.m. ET

Analysts are upbeat on Citigroup stock

Most of the Wall Street analysts covering Citigroup (C) stock maintain a positive outlook despite the weak sales performance in the fourth quarter and the Fed’s slightly dovish tone. Citigroup expects to generate $2 billion more in revenues from its lending business in 2019 compared with 2018, which is an encouraging sign given the lower benefit from incremental rate hikes.

Citigroup’s loans and deposits are expected to grow. Meanwhile, expense management and operating leverage are likely to result in an improved efficiency ratio. Citigroup’s earnings are expected to benefit from improved net interest revenue and lower expenses.

A couple of analysts raised their target price on Citigroup following the fourth-quarter results. UBS raised its target price on Citigroup stock to $78 per share from $77. Meanwhile, KBW increased it to $67 from $66.

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Among the 29 analysts providing recommendations on Citigroup stock, 23 analysts recommended a “buy,” five analysts suggested a “hold,” and one analyst maintained a “sell” rating. Analysts have a target price of $76.15 per share on Citigroup stock, which implies an upside of 29.2% based on its closing price of $58.93 on January 14.

Wall Street on major banks

Wall Street maintains a favorable outlook on major banking stocks in the US. Most of the analysts maintain a “buy” rating on J.P. Morgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC).

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