Goldman Sachs has a buy rating on Citigroup for the first time since 2022, as the investment bank implements a turnaround strategy that should boost shareholder returns.
Goldman has raised its stock price target for Citi to $68, implying nearly 18% upside from Wednesday's close price of $57.76.
Goldman expects Citigroup's revenue to grow at an accelerated compound annual rate of 4% to reach $85.7 billion by 2026.
Citigroup is also expected to increase share buybacks by $1 billion in 2024 and $4 billion in 2025.
The bank may have capacity for even more buybacks if Basel 3 rules are changed, it said.
Persons:
Goldman Sachs, Goldman, Richard Ramsden, — CNBC's Michael Bloom
Organizations:
Citigroup, Citi
Locations:
Basel