RBC Capital Believes Expense Discipline and Modest Revenue Growth Driving Citigroup (C)

Citigroup Inc. (NYSE:C) ranks among the best financial stocks to buy according to billionaire Israel Englander. RBC Capital reaffirmed an Outperform rating and a $121 price target for Citigroup Inc. (NYSE:C) on January 15, following the bank’s solid quarterly results. The company announced adjusted earnings per share of $1.81, exceeding analysts’ projections of $1.70.

Citigroup Inc. (NYSE:C) management indicated confidence in meeting their medium-term goals of 10-11% Return on Tangible Common Equity (ROTCE) in 2026, compared with 7.7% in 2025. The bank’s Services division ranked as its strongest branch, with a 36% ROTCE, which was followed by U.S. Personal Banking at 14%, and Banking at 13%.

Looking ahead, RBC Capital believes that moderate revenue growth and a heavy emphasis on expense management will be the major drivers for Citigroup Inc. (NYSE:C) to meet its financial goals, noting that, although the targets appear realistic and doable, execution will be critical.

Citigroup Inc. (NYSE:C) is a diversified financial services holding company that provides a range of products and services to consumers, corporations, governments, and institutions. It operates through five segments: Services, Markets, Banking, US Personal Banking, and Wealth.

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