Citi Featuring on Analysts Top Stock Shortlists for 2025

CitiGroup (NYSE: C) have been included in a couple of top stock ideas lists already in the early days of 2025, with various other upgrades coming in the first trading days of the year. Following a strong year in 2024, where Citi outperformed the broader S&P 500, the outlook appears increasingly optimistic, supported by both macroeconomic tailwinds and company-specific catalysts.

Over the past year, Citi managed outperformance whilst navigating a challenging market environment with fluctuating interest rates, evolving regulatory landscapes, and mixed performance in the investment banking sector. Despite these challenges, the bank demonstrated resilience, capitalizing on trading revenues and benefiting from its diverse revenue streams.

Analysts have highlighted a variety of factors underpinning Citibank’s potential for upside in 2025. With the first session of the year complete, Citi's stock price is moving upwards in this morning's pre-market, gaining 1.46%.

Here are a few of the analyst revisions and commentary to have hit so far this year:

Keefe Bruyette: The firm raised its price target to $85 from $82, maintaining an “Outperform” rating. It named Citi one of its top ideas for 2025, citing its valuation, which trades at a 30% discount to peers on a price-to-earnings basis and at “only” 79% of its current tangible book value. The analyst emphasized key near-term catalysts, such as potential revenue growth in investment banking and trading, and noted that Citi has the most significant upside in its “Blue Sky analysis.”

Wells Fargo issued the most bullish outlook, raising its price target to $110 from $95 and reaffirming an “Overweight” rating. The firm described Citi as its “dominant number one pick under almost any scenario” in the large-cap bank space. Wells Fargo cited the bank’s progress in addressing expenses and its shift from “value destruction to creation” as pivotal factors. The analyst highlighted that Citi’s book value should grow even in a recession, with the stock trading 20% below tangible book value.

Wolfe Research: Raising its target to $83 from $77, Wolfe Research maintained an “Outperform” rating. The firm’s 2025 playbook emphasized Citi’s positioning among financial names with secular growth stories. While noting that valuations in the sector appear stretched, Wolfe remains optimistic about Citi due to its exposure to “Trump tailwinds” and broader growth narratives.

Evercore ISI: The firm raised its price target modestly to $69 from $66, keeping an “In Line” rating. While Evercore acknowledged a recent slowdown in investment banking activity, it maintained a cautiously optimistic view, asserting that improvement in the sector is a “when, not if” story. The firm expects a strong start to 2025, driven by pent-up demand and anticipated activity in equity markets.

What We Take From This

The consensus price target of $81.20 reflects a healthy potential increase of 15% from latest price action, with the low mark of $66 far closer than the high bar of $110.

Citibank’s valuation, trading at a significant discount to both peers and its tangible book value, remains an interesting opportunity. Analysts broadly agree that the stock is well-positioned to capitalize on improving macroeconomic conditions, such as a potential rebound in investment banking and trading revenues. Additionally, Citi’s proactive cost management and strategic focus on profitability signal a positive inflection point for the company.

While risks such as regulatory uncertainties and global economic headwinds persist, the consensus among analysts points to meaningful upside potential, if they are right that is.