JPM - Citigroup: Still Looks Undervalued After Climbing More Than 40% Over The Past Year
2024-06-03 09:00:00 ET
Summary
- Citigroup's shares have climbed 40.59% over the past year and are forecasted to hit medium-term targets for revenue and loan growth.
- I highlight the risks of investing in Citigroup, including potential credit crunch and economic recession.
- Citigroup's strong Q1 2024 earnings, cost-cutting efforts, and undervalued shares make me bullish on the stock, expecting shares to approach $80 by the end of the year.
Citigroup ( C ) (CITI:CA) is getting its groove back as shares have climbed 40.59% over the past year. After reaching $80 back in June of 2021, Citigroup's shares fell to around $41 in October of 2022 and were traded sideways for the next year. Many didn't trust the book value or the quality of their loans, and the regional banking crisis seemed to have put JPMorgan Chase ( JPM ) on an even larger pedestal. Citigroup started 2024 out with a double beat as they generated $21.1 billion in revenue and produced $1.58 in EPS. Citigroup is forecasting that they will hit their medium-term targets and grow their revenue at a compound annual growth rate ((CAGR)) of 4-5% while growing their loans by 6-7% in 2024. While shares of Citigroup are on the rebound, I still believe they are undervalued as they are transforming the business while driving higher levels of book value. Citigroup still looks undervalued compared to its peers, and I think that there is still room for shares to appreciate further in 2024. I am sticking with Citigroup, as I believe we could see shares approaching $80 by the end of the year....
Citigroup: Still Looks Undervalued After Climbing More Than 40% Over The Past Year