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June 26.2025
2 Minutes Read

Citi Aiming for Competitive Comeback: Analyst Boosts Price Target to $100

Citigroup restructuring under Jane Fraser in a professional setting.

Citigroup’s Bold Moves Under Jane Fraser

Jane Fraser, CEO of Citigroup, has made headlines for her ambitious restructuring plans for the bank, which employs around 229,000 full-time workers and boasts total assets of $2.5 trillion. Her efforts have attracted both praise and skepticism over the past three years. Recently, a Bank of America analyst, Ebrahim Poonawala, expressed optimism in a report dated June 26, raising Citi's price target to $100, signaling investor confidence in Fraser’s direction.

Can Citi Become Competitive?

Citi's previous restructures, including transformations after the 2008 financial crisis, demonstrate a history of significant overhauls. Fraser’s latest plan includes strategic divestments of international consumer banking sectors along with advancements in technology and personnel. Poonawala noted these actions could give the bank a competitive edge in a challenging financial landscape.

Positive Early Indicators

Analysts have seen tangible improvements across Citi's five core business units in terms of profitability, with emerging leadership roles enhancing focus in wealth management and global banking. Key hires include seasoned executives like Vis Raghavan from JPMorgan and Tim Ryan from PwC, positioning Citi for growth. Poonawala predicts this momentum may yield a return on tangible common equity (ROTCE) exceeding 10% by 2026, which would be a strong turnaround compared to past performance.

The Market's Reaction and Future Outlook

Citi's stock has climbed approximately 22% since Fraser took over, illustrating market trust in her strategic choices despite internal and external challenges. If the current trajectory continues without extreme economic disruptions, Poonawala's optimistic forecast suggests Citi could finally emerge as a strong competitor in the banking sector.

Conclusion: A Rallying Point for Investors

As we look ahead, Citigroup’s restructuring under Fraser could pave the way for revitalized performance in a sector marked by volatility. For investors and business professionals, monitoring this evolution offers insights into broader market trends and competitive strategies within the banking industry.

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08.19.2025

Are Advanced Degrees Worth It? Jad Tarifi’s Take on AI’s Impact

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Soho House Transforms: $2.7 Billion Deal Signals Transition to Private Ownership

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