Citigroup's stock price is attracting attention in the banking sector. Bank of America released a report last week, positioning Citigroup as the top priority among major bank stocks and raising its target stock price to $150. This is quite a significant move.

The key points are that Citigroup's risk-return profile is attractive, and that as the ROTCE gap narrows over the next 12 to 24 months, the stock price could be revalued from its current 1.2x to 1.5x PBR. The reforms being pushed forward by CEO Jane Fraser and the strengthening of competitive advantages across five business segments are likely to become near-term catalysts that draw investors' confidence.

EPS forecasts have also been adjusted, with next year and the year after kept unchanged at $12.50 and $15, respectively, while fiscal year 2026 has been raised from $10.49 to $10.79. This seems to be due to the first-quarter results coming in above expectations. Since the buy rating has also been reaffirmed, it seems worthwhile to keep closely watching Citigroup's stock price trend for the time being.