Goldman Sachs analyst Ryan M. Nash reaffirmed a Buy rating on Citizens Financial Group (NYSE:CFG) with a $60 price forecast, applying a 12x multiple to 2026 normalized earnings.
Nash described third-quarter 2025 results as solid, citing a pre-provision net revenue (PPNR) beat and constructive fourth-quarter guidance.
CFG posted EPS of $1.05, topping the $1.03 consensus, with PPNR of $787 million versus $768 million expected, fueled by stronger fee income of $630 million. Net interest income totaled $1.49 billion, in line with expectations, driven by a 3.0% net interest margin (NIM).
Deposits rose 3% quarter-over-quarter to $180 billion, while capital markets fees outperformed, offsetting softer card fees.
Nash said Q4 guidance signals continued PPNR growth, with NII expected to rise 2.5%–3%, fees stable, and expenses slightly higher—implying modest upside to Street forecasts.
He noted that CFG’s medium-term NIM target of 3.25%–3.50% remains intact despite lower Fed funds rate assumptions, reflecting confidence in margin resilience.
Nash also highlighted an expected 7% EPS accretion in 2025, driven by private banking growth and ongoing efficiency programs, such as “Reimagine the Bank,” which could exceed the $400 million benefit achieved under TOP 6.
Meanwhile, BofA Securities analyst Ebrahim H. Poonawala recently upgraded CFG to Buy from Neutral, lifting the price forecast to $65 from $52. He projects ROTCE to expand over 300bps to 14.6% by 2028, underpinned by NIM expansion, cost efficiency, and operating leverage, with revenue growth outpacing peers and potential upside from reviving M&A activity.
Price Action: CFG shares are trading 0.43% lower at $51.58 at the last check on Wednesday.
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