Update shared on09 Sep 2025
Fair value Increased 1.76%Citizens Financial Group’s consensus price target was raised as analysts grew more confident in its strong recent results, improved earnings outlook, and attractive valuation, driving a modest increase in fair value from $55.47 to $56.21.
Analyst Commentary
- Bullish analysts highlighted strong Q2 results, including higher revenue, robust loan and assets under management growth, and favorable credit metrics.
- Increased confidence in Citizens Financial’s ability to achieve revenue guidance following solid recent performance.
- Positive views on long-term structural benefits of scale and improved predictability in returns, with analysts citing a multi-year return on equity improvement story and attractive valuation.
- Noted net interest margin expansion, operating efficiencies, and ongoing benefits to net interest income as drivers for superior future EPS growth.
- Sector-wide factors such as midcap banks trading at significant discounts and expectations for a supportive regulatory environment contributed to upward price target revisions.
What's in the News
- Citizens Financial Group will redeem all outstanding shares of its 5.650% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series F, at $1,000 per share, with redemption and dividend processes handled through Computershare Trust Company.
- Aunoy Banerjee, formerly CFO of Barclays Bank PLC, has been appointed Chief Financial Officer, replacing John Woods; Chris Emerson will serve as interim CFO.
- The company repurchased 5.13 million shares for $200.02 million in Q2 2025, totaling 76.36 million shares (16.48% of outstanding) and $2.8 billion under the ongoing buyback program.
- Net charge-offs for Q2 2025 were $167 million, or 48 basis points of average loans and leases, down from 58 basis points the previous quarter, reflecting non-core loan sales.
- Citizens increased its equity buyback authorization by $1.2 billion to a total of $4.30 billion and launched new Mastercard credit cards with enhanced rewards and features targeting diverse consumer segments and Private Bank clients.
Valuation Changes
Summary of Valuation Changes for Citizens Financial Group
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $55.47 to $56.21.
- The Future P/E for Citizens Financial Group remained effectively unchanged, moving only marginally from 9.84x to 9.98x.
- The Discount Rate for Citizens Financial Group remained effectively unchanged, moving only marginally from 7.06% to 7.10%.
Disclaimer
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