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Citizens Financial (CFG) Draws Upgrades as Fee Growth Boosts Outlook

Citizens Financial Group, Inc. (NYSE:CFG) is one of the best bank stocks to buy trading under book value. Citizens Financial Group, Inc. (NYSE:CFG) is attracting renewed optimism from Wall Street after Citi raised its price target to $60 from $57 on July 21, while maintaining a Buy rating. With shares currently trading around $49.20, that implies a potential upside of over 20%, signaling confidence in the bank’s near-term prospects. The upward revision follows the company’s solid second-quarter performance and encouraging guidance for Q3, particularly in non-interest income areas like fees.

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In its Q2 earnings report, Citizens reported earnings of $0.65 per share, beating analysts’ expectations by a few cents. Although net interest income showed some compression, a common theme across regional banks, strong fee-based revenue and solid expense management helped the bank deliver steady results.

Citi noted that Q3 guidance came in stronger than anticipated, especially in fee income, which includes services like wealth management and card-related fees. That improvement could be a sign that Citizens is successfully diversifying its revenue base at a time when interest-rate pressure is hitting lending margins across the sector. As the broader banking sector regains its footing, Citizens’ combination of better-than-expected guidance and strong capital positioning makes it a stock to watch. The valuation still leaves room for upside, particularly if fee growth continues into the second half of the year.

While we acknowledge the risk and potential of CFG 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 CFG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Must-Buy Semiconductor Stocks to Invest In and 10 Best SaaS Stocks to Buy According to Analysts.

Disclosure: None.

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