Barclays analyst Jason Goldberg upgraded Citigroup from equal weight to overweight, citing an “inflection point” for the company amid a positive outlook for large-cap banks. He raised the price target by $25 to $95, suggesting a 33.8% upside from Friday’s close. Goldberg’s bullish thesis for large-cap bank stocks in 2025/26 includes expectations for accelerating earnings growth, increased investment banking fees, improved operating leverage, higher return on tangible common equity (ROE), enhanced capital returns, and P/E multiple expansion. He highlighted Citigroup’s recent performance, noting that all five business segments showed annual revenue growth and positive operating leverage in Q3. He anticipates further improvements in revenue and expense targets, along with a rise in ROE from 7.2% towards 11-12%. Goldberg expressed a generally constructive view on large-cap U.S. banks, spurred by anticipated deregulation following the Republicans’ electoral success. However, he cautioned about ongoing regulatory risks and concerns regarding Citigroup’s exposure to emerging markets. Following the upgrade, Citigroup shares rose 1.8% in premarket trading, while the stock has also increased about 0.9% in 2025, following a significant 36% rise the previous year.
