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Investment Thesis
Citi (NYSE:C) is in the midst of a turnaround which is slowly but surely improving the earnings results being achieved by the bank. While Q3 results did see some solid gains in their Services, Banking and Wealth
Citi: Reasonable Q3 Results But Shares Appear Fairly Valued
Summary
- Citi is undergoing a turnaround, showing improvements in Services, Banking, and Wealth units, but USPB and Markets segments remain as laggards.
- Q3 FY24 results were mixed, with strong service and commercial banking earnings offset by rising credit costs and weak USPB performance.
- Shares appear fairly valued based on earnings, yet on an asset basis, the stock looks significantly undervalued.
- Long-term outlook remains positive under CEO Jane Fraser, but short-term pressures and macroeconomic risks warrant caution.
- Despite a 50% rally in 2024, Citi's weaker returns compared to peers justify a Hold rating until profitability increases or stock price discounts.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of C either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I do not provide or publish investment advice on Seeking Alpha. My articles are opinion pieces only and do not solicit any content or security. Opinions expressed in my articles are purely my own. My opinions may change at any time and without notice. Please conduct your own research and analysis before purchasing a security or making investment decisions.
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