After Meeting With Jane Fraser, Wells Fargo Reiterates Citi As Top Bank Pick

Wells Fargo has reiterated Citi as its top bank pick after a meeting with the bank’s CEO, Jane Fraser, reinforced that valuation creation is coming soon.

According to TheFly, Wells Fargo analyst Mike Mayo stated that Citi is "on the cusp of transitioning from a value destruction to value creation.” He noted that the stock should rise above its tangible book value.

The firm said Citi's capital should allow for accelerated buybacks following the bank’s late-June Federal Reserve stress test.

The analyst also highlighted that the lender’s credit quality reflects declining delinquencies. According to Wells Fargo, Citi’s corporate structure is a "game changer" that brings in new accountability in its five lines of business.

Wells Fargo has an ‘Overweight’ rating on Citi with a $110 price target. This implies a 47% upside from the stock’s current level.

During the bank’s first-quarter earnings report, Fraser stated that Citi remains intently focused on executing its strategy, which is based on a diversified business mix and will perform in a range of macro scenarios.

“When all is said and done, and longstanding trade imbalances and other structural shifts are behind us, the U.S. will still be the world’s leading economy, and the dollar will remain the reserve currency,” she said.

According to a Politico report, the Trump administration is preparing to alter rules on how much Wall Street lenders must set aside to absorb potential losses during economic turbulence.

The move would follow years of lobbying by big banks and Republican lawmakers to adjust the rules imposed following the 2008 financial crisis.

Citi shares traded 0.68% lower on Monday morning. The stock has gained 7% in 2025 and 21% in the past 12 months.

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