BOFA analyst raises the price of CITI to $ 100, and takes a bullish bid to restructure freezer

With a total of $ 2.5 trillion, City is one of the largest banks in the country, employment About 229,000 full -time workers starting last year. Fraser took over the position of CITI CEO in March 2021, and is widely considered the most powerful woman in Wall Street. (This year, Fraser ranked third for the strongest woman in business, according to Fortune’s The most powerful women listCity has gained about 22 % since joining the bank.

City is not strange to repairs. In the late 1990s, the bank subject Great reorganization after the Citicorp is integrated with Travelers That was created Citigroup. City reorganization Once again after the 2008 financial crisis, then, in 2019, I pledged to another Restructuring.

Fraser was subjected to a large scrutiny of the latest City renewal. I faced the pressure from AnalystsAnd the organizers and even the interior Opposition. But Ibrahim Bonawalla, BOFA research analyst, believes that “this time is different”, which is the title of the June 26 memo.

“We consider City’s transformation among the most complex in the companies of companies, but Fraser has taken measures (such as international consumer exits, getting rid of the public budget, technology/employees investments, simplifying business, and employing external talents) that give City a combat opportunity, from our point of view,“ Bonnoula wrote in observation. Poonawala reiterated a “purchase” classification for City and strengthened its target price to $ 100 from $ 89.

It includes large freezer movements in City Abstraction Almost all bank privileges of international consumers in City, exit from non -basic operations, and leadership reform. Last year, City I rented Vis Raghavan, former head of global investment banking services in Jpmorgan Chase Executive, to lead global banking services. Also added Tim RyanFrom PWC, to lead technology and business empowerment, as well as Andy Al -NasrFrom Merrill Wealth Management, to the head of wealth.

Over the past year, the five CITI companies follow the improved profitability, Poonawala said, adding that wealth and banking services have gained a clearer focus under new leadership. In the absence of a severe macro economy shock, the analyst expects that CITI momentum will continue, “the way to the administration is paved to provide a return of more than 10 % on the concrete joint property rights (ROTCE) on a sustainable basis starting in 2026.” ROTCE is a scale used to compare banks and the extent of their use well for concrete shared stocks to generate profits.

In the first quarter, City’s efficiency rate decreased in each of its basic business units against a quarter of last year, Ponawalla said. He said this reflects the administration’s focus on controlling expenses.