Citizens Financial Group (CFG): Evaluating Valuation Following Preferred Stock Redemption and New CFO Appointment

It is not every day that Citizens Financial Group (CFG) decides to shake up its capital structure and bring on new leadership at the top. News that the company will redeem all outstanding shares of its Series F preferred stock, effectively eliminating related dividend obligations going forward, has caught the market’s attention. At the same time, the announcement that a new Executive Vice President and CFO is stepping in suggests Citizens is positioning itself for a new phase in its strategy. Both moves are fueling interest among investors who are watching closely for signs of what this means for future growth and capital deployment. Over the past year, Citizens stock has delivered a 30% total return, and momentum has accelerated lately. The share price has set a fresh 52-week high, reflecting renewed investor optimism in response to the company’s earnings and its latest guidance. These recent developments come alongside management’s ongoing emphasis on digital transformation and cost control, even as commercial real estate risks continue to hover. It is a mix that puts Citizens in the spotlight for both longtime holders and those on the sidelines. So with the stock riding high and strategy shifts underway, is Citizens Financial Group finally undervalued, or is the market already anticipating all the future gains?

Most Popular Narrative: 8% Undervalued

The prevailing narrative views Citizens Financial Group as undervalued by 8 percent, suggesting significant upside relative to its current market price.

The build-out of Citizens' Private Bank and expansion into high-growth markets (New York Metro, Florida, California) is scaling well. This has been accompanied by rising deposits, robust loan growth, and an increasing share of fee-based assets under management. These factors are likely to provide sustainable revenue diversification and accretive impacts to net earnings and ROE over the next several years.

Think you know what is powering this bullish price target? There is a bold set of assumptions behind the scenes, including future revenue and earnings boosts, operational tweaks, and possibly even profit margins you would not expect. Curious which numbers could justify that valuation, and how analysts say Citizens can grow into its price? The details might surprise you.

Result: Fair Value of $56.21 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, renewed weakness in commercial real estate or a slowdown in the company's digital transformation could prove challenging for Citizens and could shift the outlook quickly.

Find out about the key risks to this Citizens Financial Group narrative.

Another View: Looking Beyond Fair Value

Some investors take a different angle and look at how Citizens is priced compared to the broader industry. This lens suggests the share price is on the expensive side. Could this caution signal trouble ahead?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Citizens Financial Group to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Citizens Financial Group Narrative

If you see things differently or want to dig into the numbers for yourself, you can craft your own perspective in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Citizens Financial Group.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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