Street View: Citi's profit beat keeps focus on bigger targets ahead

By Reuters News

** Citigroup C.N beat Wall Street estimates for third-quarter profit on Tuesday, helped by stronger investment banking revenue and transactions with multinational companies as well as higher earnings from wealth management

** 23 analysts rate stock "Buy" on average; median PT is $154- data compiled by LSEG

MAKES CENTS OF THE NOISE

** Barclays ("Overweight," PT: $154) says Citi continues to pull forward investment spending into the second half of the year, while benefiting from lower transformation and stranded costs, as well as structural efficiencies driven by AI and automation

** J.P. Morgan ("Overweight," PT: $147) says the credit card business has room to improve further, hurt recently by charges for Barclays BARC.L card acquisition - unclear when these elevated payments will abate

** Truist Securities ("Buy," PT: $154) says the key takeaway is that momentum across Citi's core businesses remains strong, while management's strategy and multi-year outlook for improving return on tangible common equity (ROTCE) remain unchanged

** TD Cowen ("Buy": $148) says it is comfortable looking past a seasonally weak quarter in an otherwise strong year, provided Citi remains on track to achieve its medium-term targets

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