Citigroup expected to see over 30% rally, according to top bank analyst Mike Mayo

Citigroup Reaches Major Milestone with Organizational Streamlining Efforts

Citigroup, the banking giant, is set to complete its organizational streamlining efforts this week, marking a major milestone for the company. According to Wells Fargo’s Mike Mayo, the corporate overhaul includes multiple waves of layoffs and restructuring of management layers. CEO Jane Fraser has been leading these efforts over the past few months in an attempt to improve the bank’s performance, which has fallen behind its competitors.

As a result of these structural changes, Mayo has raised his price target on Citigroup shares to $80 from $70, suggesting a potential rally of 31.5% from Friday’s close. Mayo believes that the bank’s simpler structure will instill more confidence in investors that Citigroup can meet its targets in the future.

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Mayo emphasized that these moves represent a significant shift in Citigroup’s business focus away from its legacy matrix, which should enhance transparency, accountability, and agility within the organization. While Mayo doesn’t see any immediate catalysts for upside in the near term, he anticipates that earnings could accelerate in the long term if the restructuring efforts are successful.

Year to date, Citigroup shares have risen by 18.5%, and the stock has seen a growth of over 40% in the last 12 months. The company’s strategic revamp under Jane Fraser’s leadership seems to be resonating well with investors, providing a positive outlook for its future performance.

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Stay tuned for more updates on Citigroup’s progress and how these organizational changes could impact its trajectory moving forward.

Investors, take note – Citigroup is on the move!

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