BofA analyst raises price target for Citi to $100, takes bullish view of Fraser’s restructuring

With a total of 2.5 trillion dollars, Citi is one of the largest banks in the country, employing about 229,000 full -time workers as of last year. Fraser took over the position of CITI CEO in March 2021, and is widely considered the most powerful woman in Wall Street. (This year, Fraser ranked third for the strongest woman in business, according to the strongest women’s list in Fortune.) City has gained about 22 % since joining the bank.

City is not strange to repairs. In the late 1990s, the bank underwent a great organization after Citicorp was integrated with travelers who created Citigroup. CITI was reorganized again after the 2008 financial crisis, then, in 2019, she restructured another.

Fraser was subjected to a large scrutiny of the latest City renewal. She faced pressure from analysts, organizers, and even internal opposition. But Ibrahim Bonawalla, BOFA research analyst, believes that “this time is different”, which is the title of the June 26 memo.

“We consider City’s transformation among the most complex in the companies of companies, but Fraser has taken measures (such as international consumer exits, getting rid of the public budget, technology/employees investments, simplifying business, and employing external talents) that give City a combat opportunity, from our point of view,“ Bonnoula wrote in observation. Poonawala reiterated a “purchase” classification for City and strengthened its target price to $ 100 from $ 89.

Large Fraser movements in City include stripping all CITI franches for banking services, exit from non -essential processes, and driving reform. Last year, Citi Vis Raghavan, former head of global investment banking services at JPMorgan Chase Executive, rented to lead global banking services. He added Tim Ryan, from PWC, to lead technology and business empowerment, as well as Andy Sig, from Merrill Wealth Management, to head wealth.

Over the past year, the five CITI companies follow the improved profitability, Poonawala said, adding that wealth and banking services have gained a clearer focus under new leadership. In the absence of a severe macro economy shock, the analyst expects that CITI momentum will continue, “the way to the administration is paved to provide a return of more than 10 % on the concrete joint property rights (ROTCE) on a sustainable basis starting in 2026.” ROTCE is a scale used to compare banks and the extent of their use well for concrete shared stocks to generate profits.

In the first quarter, City’s efficiency rate decreased in each of its basic business units against a quarter of last year, Ponawalla said. He said this reflects the administration’s focus on controlling expenses.