CA - Citigroup: The Catalyst That Could Trigger A Melt-Up
2024-04-29 05:19:08 ET
Summary
- Citigroup's strategic restructure is making significant progress, with a clear focus on high ROE business lines and cost reduction.
- The management team aims to achieve 11-12% RoTCE by 2025-2026, which could result in a valuation of $100-$120 per share.
- The upcoming CCAR outcomes in June 2024 are a key catalyst that could release significant capital for share buybacks.
- If Citigroup's capital targets are reduced in the upcoming 2024 CCAR cycle, the stock may melt up quickly.
In my previous articles (such as this article ), I recog nized quite early on that Citigroup's ( C ) (CITI:CA) strategic restructure is the genuine focus. It was clear that Jane Fraser's plan wasn't just a cosmetic or "a lipstick on a pig" exercise, unlike the 12 or so prior attempted restructures....
Citigroup: The Catalyst That Could Trigger A Melt-Up