Citigroup Stock (NYSE: C) in Focus on Dec. 12, 2025: JPMorgan Upgrade, New Price Targets, 2026 Outlook

Citigroup (C) stock is drawing fresh attention on Dec. 12, 2025 after a JPMorgan upgrade and a wave of updated Wall Street price targets. Here’s what’s driving the move, what analysts expect for 2026, and the key catalysts and risks ahead.

Citigroup, Inc. stock (NYSE: C) is back in the spotlight Friday, December 12, 2025, after a major Wall Street endorsement reframed the debate around the bank’s multi‑year turnaround. In late trading, Citi shares were around $111.75.

The headline catalyst: JPMorgan upgraded Citigroup to “Overweight” from “Neutral”, pointing to a combination of macro tailwinds and Citi-specific execution—particularly on efficiency, “stranded” costs, and progress through regulatory consent orders—that could lift profitability faster than peers. ^[1]

The upgrade lands after a powerful year for Citi shareholders. Reuters reports Citi shares are up about 59% in 2025, outpacing several large-bank rivals, yet still trading at valuation levels that many analysts argue do not fully reflect a “fixed” Citi. ^[2]

Below is a comprehensive roundup of the key news, forecasts, and analysis shaping Citi stock as of 12/12/2025—and what to watch next.

What happened to Citigroup stock today: the JPMorgan upgrade (and why it matters)

JPMorgan’s call is significant because it’s not just a “valuation is cheap” argument—it’s a “profitability is about to look different” argument.

According to Reuters, JPMorgan’s analysts framed the upgrade around Citi’s internal fixes finally translating into better profitability, while also highlighting a supportive backdrop for large U.S. banks into 2026. ^[3]

Two key takeaways from today’s reporting and research notes:

Macro + markets sensitivity: JPMorgan argues Citi is positioned to benefit more than peers from a firm U.S. economy and stronger markets-related revenue (trading and investment banking activity) into 2026. ^[4]
Transformation execution: Citi’s “multi-year restructuring” and work on efficiency and consent orders are central to JPMorgan’s thesis that returns can become more competitive. ^[5]

JPMorgan’s updated price target: $124 (up from $107). ^[6]

Reuters also notes that Wells Fargo’s Mike Mayo—long one of Citi’s more vocal bulls—reacted to the upgrade and reiterated Citi as a top pick, underscoring a growing sense that the Street’s center of gravity is shifting more constructive on Citi’s turnaround. ^[7]

Fresh Wall Street price targets: Citi now has multiple “$120+” bulls

Today’s JPMorgan move wasn’t the only notable analyst update around Citi.

RBC: price target raised to $121, Outperform maintained

MarketScreener reports RBC raised Citi’s price target to $121 from $112, keeping an Outperform rating, in a note published this morning (12/12/2025). ^[8]

Piper Sandler (earlier this week): target raised to $120, with a focus on leadership continuity

In a separate update highlighted by TipRanks, Piper Sandler raised Citi’s target to $120 from $110 and maintained an Overweight rating after a conference appearance. The note flagged remarks from current CFO Mark Mason and said the incoming CFO (expected to take over in March 2026) emphasized continuity, durability, and “approaching old problems in new ways.” ^[9]

Why this cluster matters

When you see several large firms converging around similar “upside” targets—$120, $121, $124—it can act as a psychological anchor for momentum-oriented investors, especially when a stock is already in an uptrend.

Just as importantly, those targets also hint at the valuation debate: Citi has rallied sharply in 2025, but some on Wall Street still see room for a “re-rating” if returns rise and execution risk falls.

Citi’s valuation still lags key peers—despite the 2025 surge

One of the most striking details in today’s Reuters report: Citi’s stock has already rerated higher this year, but it’s still not priced like JPMorgan or even Bank of America on some common metrics.

Reuters cites LSEG data showing Citi trades at about 11.2x expected earnings over the next 12 months, versus 15.04x for JPMorgan and 12.5x for Bank of America. ^[10]

That gap is the opening for the bullish thesis:

Bull case: the market continues to reward Citi with a higher multiple as the turnaround becomes “obvious” in reported returns, controls, and efficiency.
Bear case: Citi remains “stuck” in a discount range if execution slips, credit costs rise, or regulatory constraints persist.

Under the hood: what Citi’s latest reported fundamentals say about momentum

To understand why an upgrade like JPMorgan’s resonates, it helps to look at Citi’s most recent quarterly report (Q3 2025), which management positioned as evidence that the transformation is starting to show up in performance.

In its Q3 2025 results (released Oct. 14, 2025), Citi reported:

Revenue:$22.1B
Net income:$3.8B
EPS:$1.86 (and $2.24 excluding a “notable item”)
CET1 capital ratio:13.2%
Book value per share:$108.41
Tangible book value per share:$95.72 ^[11]

Citi also said it returned about $6.1B to common shareholders through repurchases and dividends in the quarter, and indicated roughly $12B year-to-date at that time. ^[12]

What improved—and what investors still debate

In the same release, Citi reported net interest income increased 12% year over year, and described revenue growth across businesses—while also acknowledging higher expenses driven in part by investments and severance, alongside transformation and technology spending. ^[13]

The “notable item” Citi referenced in Q3 was a goodwill impairment tied to an agreement to sell a 25% stake in Grupo Financiero Banamex. ^[14]

This combination—strong revenue momentum and capital return, but still meaningful transformation costs and one-time items—is exactly why Citi’s valuation remains contested.

Capital and funding moves in December: preferred stock redemption + a new preferred series

Beyond analyst calls, Citi has also been active on capital structure management in early December—news that matters for bank investors focused on funding costs, capital efficiency, and net interest margin sensitivity.

Citi redeemed $1.5B of Series W preferred stock

In a company press release dated Dec. 3, 2025, Citi announced it would redeem, in whole, $1.5 billion aggregate liquidation preference of its Series W preferred stock (via depositary shares). Citi said the redemption aligns with its liability management strategy and reflects efforts to enhance the efficiency of funding and capital structure. ^[15]

Citi established a new Series HH preferred stock

In a Form 8‑K dated Dec. 10, 2025 (earliest event reported Dec. 9), Citi disclosed it filed a Certificate of Designations establishing a new series: 6.625% Fixed Rate Reset Noncumulative Preferred Stock, Series HH, effective immediately upon filing. ^[16]

For equity investors, these actions are usually not “needle movers” day-to-day—but they can influence the medium-term story, especially when management is trying to prove it can run a more efficient balance sheet while the rate environment evolves.

Citigroup stock forecast: what consensus targets and estimates say right now

Analyst forecasts vary widely depending on assumptions about:

how fast Citi can lift return on tangible common equity,
whether efficiency gains outpace revenue headwinds,
the path of credit costs,
and how the market values large banks into 2026.

Here’s where aggregated consensus stands, based on widely followed market trackers:

Fintel (as of Dec. 5, 2025): average one‑year price target $115.62, with forecasts ranging from $88.13 to $140.70. ^[17]
MarketBeat: consensus rating “Moderate Buy” (18 analysts), with an average price target $112.47 and a stated range of $77 to $134. ^[18]

These ranges help explain why a $124 target from JPMorgan or $121 from RBC is impactful: they sit toward the upper-middle of the broader target spectrum and reinforce the idea that Citi may still have upside if execution holds. ^[19]

Earnings outlook and the next big date: Q4 results

On the calendar, the next major potential catalyst is Citi’s Q4 earnings report. MarketBeat lists Citi’s next earnings date as estimated for Jan. 21, 2026 (before market open) based on prior reporting schedules. ^[20]

What could move Citigroup stock next: catalysts heading into 2026

As of Dec. 12, Citi’s bull narrative is increasingly centered on a “three-part unlock”:

1) Proof that profitability is structurally improving

JPMorgan’s thesis explicitly points to visibility improving as Citi cuts stranded costs, improves efficiency, and works through consent orders—i.e., the market may reward Citi not just for earnings, but for the quality and durability of those earnings. ^[21]

2) A supportive 2026 backdrop for big banks

Reuters reports JPMorgan expects U.S. banks to benefit from a solid economy, strong markets, and a favorable regulatory environment in 2026, which could counter uncertainty from inflation and labor market signals. ^[22]

If that environment shows up in trading, investment banking, and fee-driven businesses, Citi’s comparatively higher sensitivity to markets activity becomes more valuable. ^[23]

3) Capital actions and balance sheet strategy

Citi’s preferred stock redemption and the establishment of a new preferred series underscore active balance sheet management—something investors tend to reward when it supports capital return capacity and funding efficiency. ^[24]

The risks: what could derail Citi’s re-rating story

Even on a strong news day, Citi’s discount-versus-peers narrative exists for reasons—investors are still watching several risk areas closely:

Execution risk on the transformation

The market’s patience for “turnaround stories” is not infinite. Upgrades can reverse quickly if quarterly reporting shows rising costs without commensurate return improvement. Citi itself has described significant ongoing investments in transformation and technology. ^[25]

Regulatory and compliance overhang

JPMorgan’s note points directly to Citi’s progress through consent orders as part of the bullish setup—an implicit reminder that this remains a gating factor for valuation and investor confidence. ^[26]

Credit quality and macro surprises

In its Q3 2025 release, Citi reported cost of credit of $2.5B and discussed allowance build dynamics, including portfolio mix and transfer risk factors. ^[27]

If the macro picture deteriorates into 2026—especially in rate-sensitive consumer segments or in corporate credit—bank stocks can reprice quickly.

Valuation: rerating isn’t guaranteed

Citi’s forward multiple is still below certain peers, but that gap can persist if investors decide “cheap is cheap for a reason.” Reuters highlights the valuation gap clearly, framing it as a central debate point for the stock from here. ^[28]

Bottom line for Dec. 12, 2025

Citigroup stock is trading the way many “late-stage turnaround” stories do: big gains already booked, but still a case for incremental upside if profitability and execution keep improving.

Today’s JPMorgan upgrade—and the cluster of $120+ targets—signals that a meaningful slice of Wall Street is increasingly willing to underwrite Citi’s next phase: not just “less bad,” but structurally stronger. ^[29]

The next major test is straightforward: Q4 earnings and management commentary on efficiency, costs, and progress through regulatory commitments, as investors decide whether Citi has earned a further rerating—or whether 2025’s rally already captured the easy part.

Investing note: This article is for informational purposes only and is not investment advice. Bank stocks can be volatile, and forecasts/price targets can change quickly with earnings, rates, and credit conditions.

If you want, I can also rewrite this into a tighter “Google Discover” style (shorter paragraphs, more scannable, ~800–1,000 words) or expand it into a full “weekly outlook” format with a dedicated section comparing Citi to JPMorgan and Bank of America on valuation and catalysts (still without charts or images).

References

Citigroup Stock (NYSE: C) in Focus on Dec. 12, 2025: JPMorgan Upgrade, New Price Targets, 2026 Outlook—and the Risks Investors Still Watch