Analyst Says Citigroup (C) Has a 'Lot More Opportunity' Amid Attractive Valuation

We recently published 10 Trending Stocks Moving These Days. Citigroup (NYSE:C) is one of the trending stocks moving these days.

Jim Lebenthal, a partner at Cerity Partners, said in a recent program on CNBC that there’s a “lot more opportunity” yet to come for Citigroup (NYSE:C). The analyst talked about the bank’s valuation.

“City has a very specific set of circumstances to it—not necessarily applying to Bank of America or Goldman Sachs—but they’re about to do the Banamex transaction sometime in the next three to four months. Spin that out. After that happens, I see absolutely no reason why this should trade at a discount to tangible book value. It’s just below that right now. I mean, you look at something like Bank of America at 1.9 times tangible book value, and I say rhetorically, why shouldn’t the group be there? If that were to happen, that would be almost a double from here. Now, it’s a little bit provocative. We’ll talk again when we’re at 120% of tangible book value, which would be around 120–125.”

Citigroup shares recently rose after the company posted better-than-expected quarterly results. The company raised its full-year guidance for net interest income amid expectations for continued fee momentum across the Investment Banking, Services and Wealth units.

Hotchkis & Wiley Large Cap Disciplined Value Fund stated the following regarding Citigroup Inc. (NYSE:C) in its second quarter 2025 investor letter:

“Citigroup Inc. (NYSE:C) is one of the largest US banks by total assets. Investment in its IT, compliance and risk capabilities have pressured margins and returns over recent years, obscuring the banks strong core franchise. With these investments now largely complete we expect Citi’s expense to decline and its margins and returns to be more consistent with peers. Citigroup performed well in the quarter on improved profitability and positive operating leverage. We think that C is very undervalued on our normal expectations and would still be attractive even if they do not fully achieve their goals.”

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Disclosure: None. This article is originally published at Insider Monkey.