Selected stock price target news of the day - January 18th, 2024

By: Matthew Otto

Citizens Financial Group Reports Financials and Strategic Outlook for 2024

Citizens Financial Group reported financial performance for the fourth quarter and full year of 2023. The bank’s capital position showed a CET1 ratio of 10.6%, adjusted for AOCI of approximately 9%, and a tangible common equity ratio of 6.7%. Liquidity reached an all-time high, featuring a loan-to-deposit ratio of 82%, a pro forma Category 1 LCR of 117%, and 156% liquidity coverage for uninsured deposits. Citizens Financial Group reported a 13.5% underlying return on tangible common equity for the full year, with a 95% return of capital to shareholders.

Looking ahead to 2024, Citizens Financial Group aims to limit underlying expense growth to approximately 1% to 1.5% in 2024, with a strategic emphasis on technology, digital initiatives, and artificial intelligence. The bank’s medium-term goals include achieving a return on tangible common equity of 16% to 18% and maximizing contributions from private bank buildout.

Analyst Perspectives Diverge on Citizens Financial Group’s Outlook

RBC Capital analyst Gerard Cassidy maintained an Outperform rating and raised the price target from $33 to $35.
Wedbush analyst David Chiaverini reiterated a Neutral stance and lowered the price target from $36 to $35.
Baird analyst David A. George lowered the price target to $42.
BofA Securities analyst Ebrahim Poonawala raised the price target to $37.

Which Analyst has the best track record to show on CFG?

Analyst Bill Carcache (WOLFE) currently has the highest performing score on CFG with 3/4 (75%) price target fulfillment ratio. His price targets carry an average of $-1.71 (-4.31%) potential downside. Citizens Financial Group stock price reaches these price targets on average within 41 days.

U.S. Bancorp Q4 2023 Financial Highlights

U.S. Bancorp reported its financial results for the fourth quarter of 2023. Earnings per share stood at $0.49, incorporating $0.50 per share of notable items. Excluding these, adjusted earnings per share amounted to $0.99, reflecting the bank’s resilience amidst industry headwinds. Net revenue for the quarter, on an adjusted basis, reached $6.9 billion, contributing to the annual net revenue of $28.3 billion. Total loans experienced a 1.1% decline on a linked-quarter basis. The average deposit dropped by 1.9%, as the bank maintained a disciplined approach to deposit pricing. Tangible book value per share surged by 14.7% year-over-year. The common equity tier 1 capital ratio reached 9.9%, a 20 basis points increase in the quarter. A 150 basis points higher since the acquisition of Union Bank in 2022.

In terms of key performance metrics, the bank delivered a 19.6% return on tangible common equity in the fourth quarter, and a 21.7% return on tangible common equity for the entire year. Notable items, totaling $1.1 billion pre-tax or $780 million net of tax, had an impact on diluted earnings per share, reducing it by $0.50. These items included an FDIC special assessment charge of $734 million, merger and integration costs of $171 million, a charitable contribution of $110 million, and a balance sheet optimization charge of $118 million. Looking ahead, the bank expects net interest income for the first quarter of 2024 to range between $4.0 billion and $4.1 billion, with the full year 2024 net interest income projected to be consistent with the annualized fourth quarter 2023 level of approximately $4.14 billion, or slightly higher.

Analyst Perspectives: Mixed Ratings and Adjusted Price Targets

RBC Capital analyst Gerard Cassidy Maintained an Outperform rating and raised the price target from $43 to $47.
Oppenheimer analyst Chris Kotowski Reiterated an Outperform rating and lowered the price target from $60 to $59.
Stephens analyst Terry McEvoy Kept an Equal Weight rating and lowered the price target from $49 to $47.
Evercore ISI analyst John Pancari Maintained an In-Line rating and lowered the price target from $46 to $45.

Which Analyst has the best track record to show on USB?

Analyst Richard Ramsden (GOLDMAN SACHS) currently has the highest performing score on USB with 11/13 (84.62%) price target fulfillment ratio. His price targets carry an average of $-1.72 (-3.93%) potential downside. U.S. Bancorp stock price reaches these price targets on average within 411 days.

Schwab’s Q4 2023: 47% Profit Drop Amid Rate Hikes

Charles Schwab reported a 47% decline in fourth-quarter profit, with net interest revenue dropping by 30% to $2.13 billion for the period ending December 31, 2023. The impact of the U.S. Federal Reserve’s aggressive rate hikes was evident, as the company, heavily reliant on client deposits and uninvested cash balances, faced higher interest payments on deposits and debt. Schwab’s average rate on deposits increased to 1.37% from 0.46% the previous year. The firm’s strategic move to borrow from the Federal Home Loan Bank in the first half of 2023 resulted in an interest expense of $423 million, marking a fourfold increase from the prior year.

Asset management and administration fees experienced an 18% surge to $1.24 billion, driven by the management of mutual funds and exchange-traded funds. Schwab’s reported profit stood at $1.05 billion, or 51 cents per share, in comparison to $1.97 billion, or 97 cents per share, in the corresponding period of the previous year.

Analyst Views Diverge: Target Price Adjustments Reflect Mixed Sentiments

Barclays analyst Benjamin Budish maintained an Equal-Weight rating and lowered the price target from $68 to $64.
Keefe, Bruyette & Woods analyst Kyle Voigt downgraded from Outperform to Market Perform and the price target from $75 to $70.
Raymond James analyst Patrick O’Shaughnessy reiterated an Outperform rating and lowered the price target from $78 to $75.
Jefferies analyst Daniel Fannon raised the price target to $85.
JPMorgan analyst Kenneth Worthington lowered the price target to $83.
BofA Securities analyst Craig Siegenthaler raised the price target from $54 to $58.

Which Analyst has the best track record to show on SCHW?

Analyst Benjamin Budish (BARCLAYS) currently has the highest performing score on SCHW with 12/14 (85.71%) price target fulfillment ratio. His price targets carry an average of $3.55 (6.64%) potential upside. Charles Schwab stock price reaches these price targets on average within 52 days.