Overview#
Evercore ISI has raised its price target for Citizens Financial Group (NYSE:CFG) from $70 to $75, while continuing to rate the stock as Outperform. This adjustment follows the company's strong first-quarter earnings report for 2026.
Earnings Estimates Adjusted#
The firm revised its earnings per share (EPS) estimates, increasing its 2026 EPS forecast to $5.11 from $5.03, and its 2027 estimate to $6.43 from $6.33. These changes reflect a rise in pre-provision net revenue, which is the income generated before accounting for potential loan losses. This increase is primarily due to higher net interest income and fees, although it is somewhat offset by rising expenses.
Positive Momentum in Banking#
Evercore ISI noted that Citizens Financial is experiencing positive momentum in its Private Bank sector, alongside strengthening trends in commercial lending and capital markets. The company is expected to benefit from improving net interest margins as certain financial instruments mature and lower-yielding loans are phased out, which should enhance its return on tangible common equity (ROTCE).
Valuation Metrics#
Currently, Citizens Financial's stock is trading at $65.76, with a price-to-earnings (P/E) ratio of 15.39. The updated $75 price target suggests a P/E of 11.7 times the 2027 EPS estimate. The stock is viewed as attractively valued, with a price/earnings growth (PEG) ratio of 0.44, indicating it may be undervalued based on its fair value assessment. Over the past year, the stock has delivered an impressive 88% return.
Recent Financial Performance#
In its latest earnings report, Citizens Financial posted an EPS of $1.13, exceeding the expected $1.09, and reported revenues of $2.17 billion, slightly above the forecast of $2.16 billion. Other firms, including RBC Capital and DA Davidson, have also raised their price targets for the stock, reflecting confidence in the company's strategic initiatives and growth potential amidst a challenging economic environment.