According to Wells Fargo’s Mike Mayo, Citigroup will likely complete organizational improvements this week, marking a serious milestone for the banking giant. The banking giant’s corporate overhaul includes several waves of layoffs and restructuring of management levels. The moves are a part of CEO Jane Fraser’s months-long effort to enhance the bank’s performance, which has lagged behind other major banking industry competitors. In light of those structural changes, Mayo raised his price goal on Citigroup shares to $80 from $70 on Sunday, suggesting the stock could rise 31.5% from Friday’s close. Mayo believes the bank’s simpler structure should provide greater confidence that it’s going to give you the chance to attain its goals in the long run. “Investors are paying attention – this is an important milestone for Citi,” Mayo wrote in his note. “For us, these moves strengthen the unprecedented Citi [line of business] shifting the emphasis away from the existing matrix, which should increase transparency, accountability and flexibility.” To ensure, Mayo noted that he sees no obvious catalysts for growth within the near term “without a soft landing of the economy.” believes earnings could speed up in the long run if restructuring efforts are successful Year-to-date, Citigroup shares are up 18.5%, and over the past 12 months, Citigroup shares are up greater than 40%.
Top banking analyst Mike Mayo believes Citigroup gains over 30%
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