C - Citigroup: Its Turnaround Story May Finally Be Here - Execution Remains Critical

2024-02-24 12:00:00 ET

Summary

• C's turnaround story is finally here, thanks to the management's drastic cost optimization plans through 2026, with TTS/ USPB continuing to generate great growth thus far.
• Despite the impressive rally since October 2023 bottom, the stock continues to trade at a discount from its book value, with investors being paid to wait out its eventual reversal.
• The management only needs to execute as guided, with its sustained recovery hinging on promising FQ1'24 results and operational cost savings.
• However, readers must also note that C may face temporal headwinds as interest rates moderate and delinquency/ net charge off rates rise during the transitionary 2024 year.

We previously covered Citigroup Inc. (C) in October 2023, discussing its crown jewel's promising performance, TTS, with it being the fastest-growing business, well exceeding the previous Investor Day revenue CAGR target of high single digits....

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