Morgan Stanley Names Citigroup Inc. (C) Its Top Pick, Raises Price Target

Citigroup Inc. (NYSE:C) ranks among the best spring stocks to buy right now. On February 17, Morgan Stanley boosted Citigroup Inc. (NYSE:C)’s price target to $152 from $135 and labeled the bank its top pick, retaining an Overweight rating on the company’s shares. According to the firm, Citigroup Inc. (NYSE:C) is moving closer to its 2026 return on tangible common equity goal of 10% to 11%. Looking forward to the investor day on May 7, analyst Manan Gosalia expects the bank to lay out a roadmap for a mid-teens ROTCE by 2030.

Morgan Stanley Names Citigroup Inc. (C) Its Top Pick, Raises Price Target

The firm predicts that, as transformation and residual costs decrease, Citigroup Inc. (NYSE:C) will boost its market share across its businesses. Morgan Stanley also deemed the bank’s valuation of 1.0 times its 2027 tangible book value per share attractive.

In addition, the bank recorded strong quarterly results back in January. The Services division was the bank’s strongest branch, with a 36% ROTCE, followed by U.S. Personal Banking (14%) and Banking (13%).

Citigroup Inc. (NYSE:C) is a diversified financial services holding company that provides a range of products and services to consumers, corporations, governments, and institutions. It operates through five segments: Services, Markets, Banking, US Personal Banking, and Wealth.

While we acknowledge the potential of C to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than C and that has 100x upside potential, check out our report about this cheapest AI stock.

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