What Makes Citigroup Inc. (C) Appear So Attractive

Citigroup Inc. (NYSE:C) is one of the 10 best banking stocks to buy according to hedge funds.

On January 15, Piper Sandler reiterated its Overweight rating for Citigroup Inc. (NYSE:C). The firm also raised the price target from $130 to $135, leading to an upside potential of 23% at the prevailing level.

What Makes Citigroup Inc. (C) Appear So Attractive

Piper Sandler’s revisions came at the back of the company’s fourth quarter earnings. Based on management’s adjusted guidance, the firm has raised its EPS forecast for Citigroup Inc. (NYSE:C).

On January 15, Truist Securities maintained its price target of $129 and a Buy rating on Citigroup Inc. (NYSE:C), after the company reported solid fourth-quarter results. The firm noted that while reported EPS came in at $1.19, earnings adjusted to $1.81 after excluding a one-time loss related to the sale of Citi’s Russia subsidiary.

The adjusted figure exceeded consensus estimates by 12%, supported by solid provision and pre-provision net revenue performance. Citi also reaffirmed its target of generating a 10–11% ROTCE in 2026, with cost efficiency expected to improve as the bank guides towards an efficiency ratio of approximately 60%.

Citigroup Inc. (NYSE:C) serves consumers, corporations, governments, and institutions through an extensive range of financial products and services. The business is broadly structured around five distinct segments, i.e., Services, Markets, Banking, U.S. Personal Banking, and Wealth. The company offers a range of products and solutions across its underlying segments.

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.

READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.

Disclosure: None. Follow Insider Monkey on Google News.