UPDATE: Oppenheimer Initiates Coverage On Citizens Financial Group On Rising Return Story At TBV

In a report published Monday, Oppenheimer analyst Ben Chittenden initiated coverage on

with an Outperform rating and $29.00 price target. In the report, Oppenheimer noted, “We are initiating coverage of Citizens Financial (CFG) with an Outperform rating and a $29 PT. Our thesis for owning CFG is simple/straightforward. Post spin-off from RBS, the stock appears in a unique position to improve returns. The company is shifting from a mantra of ‘grow capital and minimize risk' to one of prudent risk-taking and organic growth to beef up its offering. Management has presented a clear plan to increase ROTCE to 10%-plus by YE16. The stock is trading at TBV, and we think that a 10% ROTCE should justify a 1.2x multiple. The biggest risk is execution, but even if it takes until YE16 to get to our PT of $29, investors would still earn a 12% IRR.” Citizens Financial Group closed on Friday at $23.62.