Truist Raises Citigroup (C) PT to $105, Cites Strong Q2 2025 Performance

Citigroup Inc. (NYSE:C) is one of the best inexpensive stocks to buy according to hedge funds. On September 3, Truist analyst John McDonald raised the firm’s price target on Citi to $105 from $99, while keeping a Buy rating on the shares. Since the financial crisis, Citigroup’s shares have struggled to gain significant momentum, largely because its Return on Tangible Common Equity/RoTCE has had difficulty remaining above 10% for a prolonged period. This makes it crucial for the company to successfully meet its revenue and expense targets.

In Q2 2025, the company’s net income was $4 billion, which translated to $1.96 in EPS. Revenue saw a significant 8% year-over-year increase, which reached $21.7 billion. The company’s RoTCE was 8.7%. This strong performance was driven by 3 of the company’s 5 business segments achieving their best Q2 revenues on record.

The Markets revenue was up 16%, which marked its best Q2 since 2020, with strong performance in fixed income and equities. The Services segment’s revenue was up 8% and a notable RoTCE of 23%, due to increased loans and deposits, which both grew by 3% sequentially. Wealth revenue climbed by 20%, achieving a pre-tax margin of 29%, although the company noted a slowdown in new asset inflows due to current macroeconomic uncertainty. US Personal Banking revenue also saw an increase of 6%.

Citigroup Inc. (NYSE:C) is a diversified financial services holding company that provides various financial products and services to consumers, corporations, governments, and institutions.

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Disclosure: None. This article is originally published at Insider Monkey.