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Citizens Financial Group, Inc. (CFG), with a market cap of $16.08 billion, is one of the largest retail bank holding companies in the U.S. Headquartered in Providence, Rhode Island, Citizens offers a comprehensive range of retail and commercial banking products and services to individuals, institutions, and companies. It operates an extensive network of branches and ATMs across the New England, Mid-Atlantic, and Midwest regions.
Citizens Financial has outperformed the broader market over the last year. The stock has gained 28.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.2%. But in 2024, CFG stock has gained only 4.6%, while the SPX is up 11.2% on a YTD basis.
Narrowing the focus, CFG’s outperformance is also apparent compared to the SPDR S&P Regional Banking ETF (KRE). The exchange-traded fund has gained 20.4% over the past year, lagging CGF’s performance. Moreover, CFG’s gains on a YTD basis compare to the ETF's 7.5% decline over the same period.
On Apr. 17, Citizens Financial reported Q1 results, missing Wall Street's expectations for EPS and revenue. The stock gained 1.9% on the day it released earnings but declined marginally the following day.
For the current fiscal year, ending in December, analysts expect CFG’s EPS to grow marginally to $3.15 on a diluted basis. The company's earnings surprise history is disappointing. It missed the consensus estimate in each of the last four quarters.
Among the 20 analysts covering CFG stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” and nine “Holds.”
This configuration is slightly more bullish than three months ago, with eight suggesting a “Strong Buy.”
On May 7, Jason Goldberg from Barclays maintained a “Hold” rating on Citizens Financial, with a price target of $40.00, implying a potential upside of 15.4% from current levels.
The mean price target of $38.94 represents a 12.3% premium to CFG’s current price levels. The Street-high price target of $43 suggests an upside potential of 24.1%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
