Analysts Are Cutting Price Targets of These 5 Stocks

02. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 81

Citigroup Inc. (NYSE:C) is one of the biggest banks in the US, along with Bank of America Corporation (NYSE:BAC), Wells Fargo & Company (NYSE:WFC), the Goldman Sachs Group, Inc. (NYSE:GS), and JPMorgan Chase & Co. (NYSE:JPM). Janet Yellen, the former Federal Reserve Chairperson and current Treasury Secretary, suggests that Citigroup Inc. (NYSE:C) has the chance to engage in bank mergers amidst the difficult circumstances faced by the industry. While this may lead to an increased concentration of corporate power in the future, it could be seen as a necessary step in the present to confront the prevailing economic uncertainty.

David Konrad, an analyst at Keefe Bruyette, on May 25, reduced the price target for Citigroup Inc. (NYSE:C) from $50 to $48 and maintained a Market Perform rating on the company’s shares. The analyst explains that Citigroup Inc. (NYSE:C) has abandoned the previously planned sale of its Mexico retail bank and intends to pursue an initial public offering (IPO) for the business in 2025. The management’s objective is to optimize shareholder value. However, Keefe Bruyette believes the decision introduces increased execution risk, as the management could not secure a suitable price from a potential buyer. This development also raises concerns about the attractiveness of the underlying assets, as investors had earlier anticipated a strong price and gain for shareholders.