Morgan Stanley Upgrades Citizens Financial Group (CFG) to Overweight

Morgan Stanley analyst Manan Gosalia upgraded Citizens Financial Group (NYSE: CFG) from Equalweight to Overweight with a price target of $71.00 (from $53.00).

The analyst comments: "Citizens is one of the best profitability improvement stories in the group trading at a discount, with several positive catalysts coming over the next 12 months. We see ROTCE improving from 11% in 2Q25 to 15% in '27, closing the gap vs. peers, and nearing 16-18% target. Most of this improvement is independent of rates. Positive catalysts over the next 12-18 months include CFG's Private Bank buildout, improving credit, and lower capital requirements after the 2026 stress test. Multiple ways to win: CFG can surprise positively vs. our base case if it optimizes capital faster, loan losses normalize quicker, or with fewer rate cuts. Upgrading to Overweight with a $71 PT applying an 11x P/E multiple on 2027 EPS, implying 33% upside."

For an analyst ratings summary and ratings history on Citizens Financial Group click here. For more ratings news on Citizens Financial Group click here.

Shares of Citizens Financial Group closed at $53.38 yesterday.

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