Why This Citigroup Analyst Believes The Stock Has Reached An 'Attractive Entry Point'

Shares of Citigroup Inc C were climbing in early trading on Wednesday.

Although banks had a healthy start to the year, industry-related issues have stroked fears again and given investors “reason to disengage,” according to Piper Sandler.

The Citigroup Analyst: Piper Sandler's Scott Siefers upgraded the rating for Citigroup from Neutral to Overweight, while raising the price target from $56 to $63.

The Citigroup Thesis: Another industry “speedbump” has driven investors to take profit following a three-month rally in banking shares, Siefers said in the upgrade note.

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Although there are some concerns around credit, interest rate risk, and regulatory intervention, Citigroup’s “unique story remains intact,” Siefers stated.

“Though the turnaround will likely have some bumps along the way, we like CEO Jane Fraser’s more targeted view of the company, we believe cost flexibility should support the overall outlook (which we consider important given an ambitious revenue forecast), and the group’s recent pullback has created a more attractive entry point for the shares,” he further wrote.

C Price Action: Shares of Citigroup had declined by 2.14% to $53.89 at the time of publication on Wednesday.

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