Piper Sandler upgrades Citigroup to Overweight, sees 19% upside potential

Piper Sandler has upgraded Citigroup (NYSE:C) to overweight from neutral, citing increased confidence in the U.S. bank's outlook.

Analyst R. Scott Siefers has also raised his price target on Citi to $63 from $56, implying a 19% increase from the last price.

Siefers likes the CEO's more targeted view for the lender and notes that cost flexibility should support the overall outlook.

He believes that the recent pullback has created a more attractive entry point.

Seeking Alpha's Quant Rating System, which grades stocks on quantitative measures like valuation and momentum, recommends a Hold. while the average SA Analyst and Wall Street rating is Buy.

SA contributor JP Research highlights Citigroup's history of destroying shareholder value, citing disappointing quarterly results. However, there's optimism about mid-term turnaround progress. The key factor is seen as Citi's deeply discounted stock, which could experience a significant re-rating if the company's fortunes improve.

Citigroup (C) stock rose 1.4% on Wednesday during premarket hours.