Street View: Citigroup to benefit from better regulatory backdrop

Citigroup C.N beat Wall Street estimates for first-quarter profit on Tuesday and moved closer to its profitability target as its traders reaped a windfall from volatile markets that fueled client activity.

Average recommendation of 21 brokerages is "buy", median PT is $85 - data compiled by LSEG

THE STARS ARE ALIGNED

BofA Global Research ("buy," PO: $89) believes Citi will benefit from a more balanced regulatory environment, which will help with faster share buybacks and better management of investment spending

KBW ("outperform," PT: $92) says a potential decrease in regulations could reduce some control and procedure risk for co, but also provide significant capital relief

Oppenheimer ("outperform," PT: $91) says Citi is more affected by a recession than its peers due to its focus on cards

RBC Capital Markets ("outperform," PT: $78) says co needs to focus on revenue growth and strict expense management

While the goals seem reasonable and achievable, the key factor will be how well Citigroup executes its plans, adds RBC