Citizens Financial Group Struggles Amid Market Variability

With a market cap of $17 billion, Citizens Financial Group, Inc. (CFG) stands as a prominent bank holding company in the United States, offering a comprehensive suite of retail and commercial banking services to diverse clients, including individuals, small businesses, and large corporations. The company functions through its Consumer Banking and Commercial Banking segments spread across various regions.

Performance Overview

Based in Providence, Rhode Island, Citizens Financial’s stock has seen a slight decline compared to the broader market over the past 52 weeks. CFG has risen 8.5% during this period, whereas the S&P 500 Index ($SPX) has increased by 9.2%. Furthermore, year-to-date, the shares of Citizens Financial have dropped 10.9%, contrasting with the S&P’s 3.7% decrease.

In addition, the bank lagged behind the Financial Select Sector SPDR Fund (XLF), which reported a 20.6% return over the same time frame.

Earnings Insights and Market Predictions

Despite surpassing earnings expectations with a Q1 2025 EPS of $0.77, Citizens Financial shares fell 1.8% on April 16. The bank’s net interest income dipped to $1.4 billion due to a decline in average interest-earning assets. Additionally, capital market fees decreased 15% to $100 million, reflecting lower M&A activity and signaling challenges in the bank’s fee-generating operations.

For the fiscal year ending December 2025, analysts project CFG’s EPS will increase by 15.4% year-over-year to reach $3.74. The company’s earnings surprise record is mixed, with it meeting or exceeding consensus estimates in three of the last four quarters while falling short on one occasion.

Analyst Recommendations

Among the 20 analysts covering the stock, the consensus rating stands at “Moderate Buy.” This assessment is based on 11 “Strong Buy” ratings, one “Moderate Buy,” and eight “Holds.”

On April 16, RBC Capital analyst Gerard Cassidy reaffirmed a “Buy” rating for Citizens Financial, maintaining a price target of $44.

As of now, CFG is trading below the average price target of $46.31. The highest price target of $57 suggests a potential upside of 46.2% from current levels.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data herein are intended for informational purposes. For more details, please refer to the Barchart Disclosure Policy here.

The views expressed in this article reflect those of the author and do not necessarily represent those of Nasdaq, Inc.