Citigroup Price Target Trimmed As Analysts Fear Increased Macro Environment-Associated Uncertainty

Citigroup Inc. (NYSE:C) reported on Tuesday that its first-quarter fiscal 2025 revenue growth was 3% year over year and was $21.6 billion, beating the analyst consensus of $21.29 billion. Each of the five interconnected businesses drove this growth.

Excluding divestiture-related impacts in both periods, revenues also went up 3%.

The firm reported earnings per share of $1.96, increased from $1.58 a year ago, beating the consensus of $1.84.

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Truist Securities analyst John McDonald updated models to reflect 1Q results and updated management outlooks. The updates reflect modest downward revisions to EPS, citing conservative run rates on certain fee revenue lines and slightly higher provisioning.

Price targets are adjusted lower on a combination of slightly lower EPS estimates and more conservative valuation multiples, reflecting the increased uncertainty and risks associated with the current macro environment.

Truist cut its 2025E EPS to $7.40 (-$0.10) and maintains its 2026E EPS at $9.30. The analyst continues to model ROTCE in the low-8% range for 2025E and the mid-9% range for 2026E relative to management’s target for a 10-11% ROTCE in 2026.

Analyst McDonald reduced the price target from $84 to $79, reiterating the stock rating of Buy.

RBC Capital Markets says management remains confident in its ability to achieve its medium-term financial target, ROTCE of 10-11% in 2026 versus the 9.1% recorded in 1Q25.

“Modest revenue growth and a laser-like focus on expenses will be the primary drivers needed to achieve its goals,” analyst Gerard Cassidy writes.

RBC revised 2025 and 2026 EPS estimates to $7.45 and $9.75 from $7.52 and $9.76, respectively, incorporating lower noninterest income partially offset by higher net interest income.

The analyst revised the price target to $78 from $85 while maintaining the Outperform rating.

Keefe, Bruyette & Woods says Citi posted a good quarter. The analyst adds that FICC and M&A growth was better than that of peers. Card revenue results were ahead of expectations; however, NCOs did tick up, partly due to seasonality, but will bear watching should the economy deteriorate.

David Konrad lowered its 2025E by 17 cents to $7.13 and 2026E by 35 cents to $9.25, driven by higher credit costs largely related to cards, resulting in a price target cut from $96 to $92, maintaining an Outperform rating.

Piper Sandler reiterates Citigroup with an Overweight, lowering the price target from $83 to $77.

Price Action: C stock is down 2.75% at $62.58 at the last check Wednesday.

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