Citigroup's Big Changes Paid Off, But The Easy Gains Are Gone
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Motti Sapir1.19K FollowersFollow5ShareSavePlay(9min)CommentsSummaryCitigroup has delivered consistent execution, driving a 30%+ stock gain and narrowing its valuation gap with peers.C's turnaround progress is evident in improved operating leverage, disciplined cost management, asset sales, and broad-based segment growth.Return on tangible common equity is 8–9%, still lagging top peers; further upside depends on sustained profit improvement and cost control.I maintain a Hold rating as risk/reward is balanced, with most turnaround benefits priced in and future gains reliant on clear earnings growth. VV Shots/iStock Editorial via Getty Images Since my last Hold call in June, Citigroup Inc.'s (C) stock has done much better than I expected. At the time, shares were around $85, and my view was that most of the near-term upside from the turnaround had already been captured. ThatThis article was written byMotti Sapir1.19K FollowersFollowWith over 15 years of experience in the markets and a degree in economics, I focus on breaking down companies with clarity and discipline. My goal is to give individual investors a straightforward, honest view—what’s working, what isn’t, and where the risks and opportunities actually are. I don’t chase narratives. I follow the numbers and the business underneath.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.