Citigroup, Wayfair Partner On New Credit Cards
Citigroup’s retail services unit on Friday joined forces with financial services provider Wayfair to issue two new credit cards. One card will be a private labeled Wayfair Credit Card while the other will be a co-branded Wayfair Mastercard.
The multi-year agreement is tailored to boost Citigroup’s (C) retail services business. Craig Vallorano, head of the company’s retail services business said, “With e-commerce continuing to surge in popularity, we are thrilled to partner with Wayfair to provide customers with seamless, convenient financing embedded in the path to purchase.”
The two cards will charge no annual fee and customers’ rewards will not expire. In addition, customers will get $40 off on their first purchase of $250 or more. Different cash backs on in-store as well as online purchases, will also be part of the offerings. (See C stock analysis on TipRanks).
On Sept. 8, Wolfe Research Steven Chubak reiterated a Buy rating on Citigroup stock saying that the shares are significantly undervalued at current levels. Chubak believes that the company’s management team will provide favorable credit updates during upcoming banking conferences.
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 12 Buys, 1 Hold, and 1 Sell. The average price target of $68.44 implies upside potential of about 34.2% to current levels. Shares are down 36.2% year-to-date.
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