Citigroup (C) Stock Forecast & Price Target

Citigroup anticipates core revenues for FY25 to range between $83.5 billion and $84.5 billion, reflecting a projected growth of 3% to 4% compared to FY24, which had already shown a 5% increase over FY23. The company's non-interest income, excluding markets, is expected to rise year-over-year, indicating improving profitability across its segments, while its net interest income is forecasted to see modest growth from FY24's figures. Additionally, management's positive outlook on earnings per share growth for both 2025 and a notable increase in 2026 further strengthens the positive sentiment towards Citigroup's financial trajectory.

Citigroup has lowered its 2026 ROTCE outlook to a range of 10% to 11%, which is concerning as consensus estimates fall below the lower end of this range, indicating potential operational challenges ahead. Risks including a slowdown in economic activity, deterioration in credit quality, and regulatory pressures may further impair future earnings. Additionally, despite guidance for slightly lower core expenses in FY25 compared to FY24, anticipated increases in credit costs and reduced loan demand pose significant threats to the bank’s financial stability moving forward.