C - Citigroup's Rally Still Has Legs - Pay Attention To Its ROTCE
2024-05-03 14:00:00 ET
Summary
- The market continues to award C with an immense rally over the past few months, as the management executes its drastic cost optimization plans through 2026.
- Despite so, we believe that the rally still has legs, with C inherently undervalued compared to its tangible book value per share, offering interested investors with an excellent upside potential.
- While the bank may have reported a mixed FQ1'24 earnings call, attributed to the one-time FDIC special assessment expense and restructuring-related costs, we expect FQ2'24 to bring forth improved RoTCE.
- However, readers must take note of the USPB's rising credit card delinquency rates and net charge-off rates, with things likely to get worse before improving along with the macroeconomic outlook.
We previously covered Citigroup Inc. ( C ) in February 2024, discussing the management's drastic cost optimization plans through 2026, with the market already rewarding the stock with an immense rally over the past few months....
Citigroup's Rally Still Has Legs - Pay Attention To Its ROTCE