Oppenheimer Initiates Outperform On Citizens Financial Group, Sees 23% Upside For The Stock
In a research report issued today, Oppenheimer analyst Ben Chittenden initiated Outperform rating on Citizens Financial Group (NYSE:CFG) with a price target of $29, which represents a potential upside of 23% from where the stock is currently trading.
Chittenden wrote, “Our thesis for owning CFG is simple/straightforward. Post spin-off from RBS, the stock appears in a unique position to improve returns. The company is shifting from a mantra of “grow capital and minimize risk” to one of prudent risk-taking and organic growth to beef up its offering. Management has presented a clear plan to increase ROTCE to 10%-plus by YE16. The stock is trading at TBV, and we think that a 10% ROTCE should justify a 1.2x multiple. The biggest risk is execution, but even if it takes until YE16 to get to our PT of $29, investors would still earn a 12% IRR.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ben Chittenden has a total average return of -4.4% and a 63.6% success rate. Chittenden is ranked #2821 out of 3355 analysts.