Citigroup (C) Rally Just Getting Started as Restructuring Gains Traction

Citigroup, Inc. (NYSE:C) is one of the best bank stocks to buy trading under book value. Citigroup, Inc. (NYSE:C) has surged 33% year-to-date, making it the top-performing major U.S. bank stock in 2025. However, according to Wells Fargo banking analyst Mike Mayo, this rally is still in its early stages. With shares currently trading around $95.35, Mayo sees a 12-month price target of $115, implying nearly 21% upside from current levels. Looking further out, he believes the stock could climb to $150 by the end of 2027.

Citigroup (C) Rally Just Getting Started as Restructuring Gains Traction

Citi’s recent momentum has been driven by a focused restructuring strategy under CEO Jane Fraser. The bank has simplified its business into five core units, exited underperforming markets, and trimmed layers of management. As a result, it posted second-quarter earnings of $1.96 per share, up 29% year-over-year, with revenue climbing 8%.

Despite the strong performance, Citi still trades below its book value of $94, a rare discount among megabanks. Mayo points out that Citi’s transformation is far from priced in. He expects earnings to reach $10.15 per share in 2026 and nearly $12 in 2027. With a dividend yield of 2.5% and an aggressive share buyback plan that could reduce the share count by 8% in a year, Citi offers a mix of growth and value that’s becoming hard to ignore.

While we acknowledge the risk and potential of C as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than C and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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