Despite the recent run-up, large-cap banks are still seen to have potential to outperform the market into 2025 as earnings growth accelerates. It is anticipated that Citi might amplify these market drivers. Projections suggest that after achieving its revenue and expense targets in 2024, there should be continued improvement in 2025. The expectation is for Citi's valuation to enhance further as the bank progresses its return on tangible common equity from the current year's figure towards its medium-term target in the following years.

For banks, the trend lines projected out to 2025 appear well established, with only minor adjustments necessary in their earnings models and estimates. Looking ahead to 2028, expectations are set that these companies will strive to maximize their growth within the constraints of maintaining a low-to-mid-teens return on tangible common equity. However, there is a general skepticism about the potential for a significantly lighter regulatory and capital requirement environment moving forward. The valuation of this sector is seen as reasonable, offering some investment opportunities.

Citi is considered a 'Dominant #1 pick' under nearly any condition except a recession, with the anticipation that expenses will surpass expectations, and pivotal returns will significantly impact the stock. Moreover, it's projected that the book value will grow even under recession conditions, and that the management changes are the most significant in half a century. Looking ahead, it's expected that there could be a potential doubling in stock value based on significantly higher earnings and improvements in EPS, efficiency, and returns compared to peers over the next three years.