Deutsche Bank Initiates Buy On Shares Of Citizens Financial Group


In a research report published Monday, Deutsche Bank analyst Matt O’connor initiated Buy rating on shares of Citizens Financial Group (NYSE:CFG), while no price target was provided.

O’connor noted, “Our BUY rating reflects CFG’s low valuation (at just 1.0x current tangible book), industry leading capital (with Basel 3 Tier 1 common of 12.5%), and above average leverage to rising interest rates. Over time, ROTCE should improve meaningfully from just 6% in recent periods to 12%+ if we assume higher short term rates and full deployment of excess capital (and 10% if we assume only partial normalization of capital). The key challenges in our mind are near-term uncertainty surrounding capital deployment (ie CCAR), the further sell down of RBS’ stake in CFG, and the risk that interest rates remain low for longer than expected. But given the valuation, these seem reflected in the stock.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matt O’connor has a total average return of 4.4% and a 60.0% success rate. O’connor is ranked #1332 out of 3355 analysts.

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