JP Morgan Raises Target Price on Citi (C), Keeps Overweight Call

Citigroup Inc. (NYSE:C) is 1 of the 10 Best Bank Stocks to Buy successful 2026.

On February 9, JPMorgan raised its people terms connected Citi by 3.1% to $134 (from $130), reiterating its Overweight standing connected the stock. This people terms alteration comes arsenic JPMorgan updated its large-cap slope forecasts pursuing the merchandise of the 4th-quarter results.

JP Morgan echoed what it said successful its probe notes for the different banks successful its coverage, stating that it likes slope stocks for this marketplace cycle, due to the fact that of 5 factors: (1) Good economical trends, (2) Steady fundamentals, (3) Sticky inflation, which could forestall the US Fed from cutting rates excessively overmuch successful the agelong word (although helium does deliberation the Fed volition chopped rates doubly successful 2026), (4) Favorable regulatory environment, and (5) An uptick successful slope consolidations, arsenic shown by the caller M&A enactment amongst banks.

On January 14, Citi released its Q4 2025 earnings, which were headlined by a 13.5% YoY diminution successful attributable nett income to $2.5 cardinal (from $2.9 billion). Removing, however, the $1.1 cardinal nett income deed from the merchantability (which included a $1.6 cardinal overseas currency translation adjustment) of its Russia portion (approved connected December 29), adjusted attributable nett income grew 25.8% YoY to $3.6 billion. On a per diluted stock basis, net grew 29.1% YoY to $1.73 (from $1.34). This net maturation yielded a 6-basis-point YoY betterment successful adjusted instrumentality connected mean assets to 0.52% (from 0.46%) and a 125-basis-point YoY betterment successful adjusted instrumentality connected mean communal equity to 6.55% (from 5.40%).

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Earnings maturation was driven by a 14.1% YoY summation successful nett involvement income (NII) to $15.7 cardinal (from $13.7 billion), which successful crook reflected maturation successful the bank’s indebtedness publication and a humble betterment successful its nett involvement borderline (NIM). Gross loans grew 8.3% YoY to $733.0 cardinal (from $675.9 billion). ~73% of the indebtedness maturation is attributable to the commercialized indebtedness segment, which accrued $42.3 cardinal YoY (14.0% YoY growth) to $343.7 cardinal (from $301.4 billion). The remainder was from user loans, which grew astatine a much humble gait of $15.4 cardinal YoY (3.9% YoY growth) to $408.5 cardinal (from $393.1 billion).

NIMs expanded modestly by 7 ground points to 2.49% (from 2.42%), arsenic the diminution successful indebtedness yields was offset by higher deposit costs. Citi’s mean outgo of interest-bearing deposits improved by 51 ground points YoY to 2.83% (from 3.34%), portion its mean gross indebtedness output declined by 54 ground points YoY to 8.30% (from 8.84%).

Citigroup Inc. (NYSE:C) is simply a fiscal services supplier operating successful the Commercial Services, Markets, Banking, Wealth, and US Personal Banking segments. The institution is based successful New York, New York, and was founded successful 1812.