Investing.com — Barclays improved Citigroup Inc (NYSE: ) to “overweight” given that the company is at a key inflection point as it enters 2025, which is not fully captured by Citigroup’s discounted valuation compared to peers.
“We are attracted to C because its recent actions allow it to generate more consistent, higher-quality earnings while optimizing its capital base,” the analyst said. The bank reduced its international exposure and prioritized efficiency.
Barclays (LON: ) set a price target of $95, with an upside scenario of $102 if economic conditions improve. This advantage depends on the favorable background of lower interest rates, low net write-offs and controlled costs. The brokerage expects Citigroup’s earnings to reach $10 per share by 2026 in this scenario.
However, the downside is $60, related to potential headwinds. These include worsening US consumer economic conditions, particularly in credit cards, and higher-than-expected costs associated with the consent order, which could reduce 2026 EPS to $7.50.
Barclays also flagged risks arising from Citigroup’s significant international exposure, particularly in emerging markets with economic and political uncertainties.
