• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

This US bank stock could gain from Trump’s tariffs

by March 19, 2025
by March 19, 2025

Trump tariffs and the related fears of an economic slowdown ahead are broadly expected to serve as headwinds for the US bank stocks in 2025.

Still, one of them, Citigroup Inc (NYSE: C), is worth buying on the recent weakness, according to Wells Fargo analyst Mike Mayo.

Mayo expects Citi stock to benefit amidst the new tariff environment.

A close to 20% hit to its share price since mid-February has created an opportunity for long-term investors to buy a quality name at a deep discount, he argued in a research note on Monday.

Citi has a history of benefitting from tariffs

Despite the recent pullback in bank stocks, Mike Mayo continues to rate Citigroup at “overweight” and sees an upside in its shares to $110 indicating a potential upside of about 60% from here.

In his report, he recommended capitalizing on the recent weakness in Citi stock as it’s currently trading at a deep discount.

The analyst took heart in the fact that Citi benefitted from higher tariffs during Trump’s previous tenure as well since “it’s a global intermediary across regions,” adding it’s “important at a time when their buybacks could go further at ¾ of tangible book value.”

A healthy 3.2% dividend yield coupled with Citi shares makes them all the more exciting to own at current levels, according to the Wells Fargo analyst.

What else could help Citi stock in 2025?

Mayo remains uber bullish on Citigroup Inc. as he sees the financial services giant switching from “value destruction to value creation in 2026.”

While new levies under the Trump administration have been hurting bank stocks recently, the Wells Fargo analyst expects potential deregulation to meaningfully benefit Citi stock in 2025.

He’s convinced that Scott Bessent – the US Treasury Secretary will remove the red tap to put banks in charge of their own lending decisions.

Note that Citi shares are still up close to 25% versus their 52-week low despite the recent sell-off.

Citi topped estimates in its fiscal Q4

Mike Mayo remains constructive on Citi stock also because the NYSE-listed firm reported solid results for its fourth quarter in January.

Citigroup swung to a profit and topped estimates on both the top and the bottom lines in its fiscal Q4.

At the time, chief executive Jane Fraser told investors:

I want this company set up for long-term success and to ensure that we have enough capacity to invest for that.

We intend to improve returns and deliver Citi’s full potential for our shareholders.

In January, Citigroup which recently avoided one of the largest banking blunders ever also announced a massive $20 billion stock repurchase program.

About $1.5 billion of that will be executed in Q1, according to its chief of finance, Mark Mason.

The post This US bank stock could gain from Trump’s tariffs appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
GLD ETF forecast ahead of FOMC decision: what next for gold price?
next post
Netmore and Alliot Technologies Announce Partnership to Deliver End-to-End IoT Solutions

Related Posts

Asian markets open: most futures lower; Sensex to...

June 6, 2025

Here’s why the Nifty 50 Index may surge...

June 6, 2025

Circle stock price prediction: is CRCL a good...

June 6, 2025

Trump-Musk fallout risks SpaceX deals, Tesla’s standing, and...

June 6, 2025

European markets open: Stoxx 600 flat ahead of...

June 6, 2025

Musk, Trump dial back feud as White House...

June 6, 2025

XRP slips 2.5% to $2.14 as Trump-Musk clash...

June 6, 2025

China’s May export growth seen slowing to 5.0%...

June 6, 2025

FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo,...

June 6, 2025

Citi downgrades CEG stock despite Constellation Energy’s big...

June 5, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Relative Drug Pricing is Bad Medicine

    June 6, 2025
  • Want to Fix Medicaid? Look to Milton Friedman

    June 6, 2025
  • Want to Fix Medicaid? Look to Milton Friedman

    June 6, 2025
  • Relative Drug Pricing is Bad Medicine

    June 6, 2025
  • Asian markets open: most futures lower; Sensex to open flat as RBI policy decision looms

    June 6, 2025
  • Here’s why the Nifty 50 Index may surge after the RBI rate cut

    June 6, 2025

Editors’ Picks

  • 1

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 2

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,373)
  • Editor's Pick (143)
  • Investing (165)
  • Stock (882)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Perplexity AI eyes $18 billion valuation in...

March 21, 2025

Broadcom shares surge 10% after Q1-print: buy,...

March 8, 2025

Why did Stephen Curry pick Under Armour...

June 3, 2025