Latest news with #CFG
Yahoo
4 hours ago
- Business
- Yahoo
Citizens Financial (CFG) Draws Upgrades as Fee Growth Boosts Outlook
Citizens Financial Group, Inc. (NYSE:CFG) is one of the best bank stocks to buy trading under book value. Citizens Financial Group, Inc. (NYSE:CFG) is attracting renewed optimism from Wall Street after Citi raised its price target to $60 from $57 on July 21, while maintaining a Buy rating. With shares currently trading around $49.20, that implies a potential upside of over 20%, signaling confidence in the bank's near-term prospects. The upward revision follows the company's solid second-quarter performance and encouraging guidance for Q3, particularly in non-interest income areas like fees. Ffooter / In its Q2 earnings report, Citizens reported earnings of $0.65 per share, beating analysts' expectations by a few cents. Although net interest income showed some compression, a common theme across regional banks, strong fee-based revenue and solid expense management helped the bank deliver steady results. Citi noted that Q3 guidance came in stronger than anticipated, especially in fee income, which includes services like wealth management and card-related fees. That improvement could be a sign that Citizens is successfully diversifying its revenue base at a time when interest-rate pressure is hitting lending margins across the sector. As the broader banking sector regains its footing, Citizens' combination of better-than-expected guidance and strong capital positioning makes it a stock to watch. The valuation still leaves room for upside, particularly if fee growth continues into the second half of the year. While we acknowledge the potential of CFG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
CNBC
18-07-2025
- Business
- CNBC
Here are Friday's biggest analyst calls: Nvidia, Apple, Dell, Tesla, Netflix, Microsoft, Snowflake, Chipotle, Micron & more
Here are Friday's biggest calls on Wall Street: Stephens initiates Snowflake as overweight Stephens said Snowflake is best-in-class. "Long-term growth visibility which has traditionally been the replacement of legacy databases is now being augmented as faster product development has launched key new products w/large TAMs that have yet to contribute to the growth rate, in our view." Evercore ISI upgrades Citizens Financials to outperform from in line Evercore said shares of the banking company are compelling following earnings. "We are upgrading CFG to Outperform from In Line as we expect strengthening B/S [balance sheet] trends, favorable NIM [net interest margin] dynamics, fee income upside, and positive operating leverage to drive steady improvement in CFG's earnings trajectory and L/T returns." Mizuho reiterates Micron as buy Mizuho said it sees a slew of positive catalysts and that investors should buy the weakness. "We would be buyers on MU on the pullback..." Bank of America reiterates Alphabet as buy Bank of America raised its price target on Alphabet ahead of earnings on July 23 to $210 per share from $20. "Expecting strong results, above Street for 2Q." Citi downgrades Barclays to neutral from buy Citi said it sees more balanced risk/reward. "Barclays shares are +125% since end-2023 and now trade on 0.9x P/TB for a target > 12% RoTE next year. While this target appears feasible (we model ~12%), we believe the risk-reward is now more evenly balanced.." Rosenblatt initiates SentinelOne as buy Rosenblatt said the cyber security company is "significantly undervalued." "We are initiating coverage on SentinelOne (NYSE: S) with a Buy rating and a $24 Price Target." Morgan Stanley reiterates Netflix as overweight Morgan Stanley raised its price target on the stock to $1,500 per share from $1,450. "Importantly, newly deployed ad tech appears poised to deliver a roughly doubling of ad revs in '25. Netflix's early but growing use of GenAI tools to power content and product innovation further reinforces our bullish view." Read more. Deutsche Bank reiterates Microsoft as buy Deutsche raised its price target on the stock to $550 per share from $500. " Microsoft shares have significantly outperformed since the company reported much better-than-expected F3Q Azure results in April and seem well supported heading into what we anticipate will be strong F4Q results on July 30th." Jefferies upgrades Abbott Labs to buy from hold Jefferies said investors should buy the dip following earnings. "While ABT's 2Q/guide update was underwhelming, we view the stock rxn as too punitive and are taking advantage of the pullback, upgrading ABT to Buy." KeyBanc upgrades Materion Corporation to overweight from sector weight KeyBanc said it sees an attractive risk/reward for the engineered materials company. "Following our recent analysis, we are upgrading shares of Materion Corporation (MTRN) to Overweight from Sector Weight with a $112 price target, representing > 20% upside." Deutsche Bank adds a catalyst call buy on DuPont Deutsche said it's bullish ahead of earnings in early August. "We are adding DuPont as a Catalyst Call Buy as we believe the upcoming Q2 release would be a catalyst for the shares as it will mark DuPont's last quarterly earnings release prior to the spin-off of its Electronics business (Qnity) on November 1." JPMorgan reiterates Nvidia as overweight The firm said Nvidia remains a top pick heading into earnings next month. "AI/accelerated compute demand remains positioned to weather a potential trade/tariff challenging macro environment...13-15% EPS upside to outyear estimates on resumption of China shipments for AMD/ Nvidia. " JPMorgan reiterates Roku as overweight JPMorgan raised its price target to $100 per share from $85. "We believe Roku is well positioned to deliver a beat/raise qtr, with ad spend largely stable in 2Q and China tariff de-escalation." BMO upgrades Chipotle to outperform from market perform BMO said comps have begun to accelerate. "We believe CMG is well positioned for accelerating comp growth and improving margin trajectory beginning in 2H25, and view favorably its strong US-heavy store growth that has room to accelerate towards 10% over time." Evercore ISI reiterates Apple as outperform Evercore said it's sticking with the stock ahead of earnings on July 31. "Finally, AAPL we expect to see strength in June-qtr driven by better iPhone demand though focus will be on services and gross-margins." Bank of America reiterates Dell as buy The firm raised its price target on the stock to $165 per share from $155. "We expect IT Hardware companies like DELL to benefit from the growth of enterprise /sovereign AI over the next decade." Deutsche Bank reiterates Tesla as buy Deutsche said it's sticking with the stock heading into earnings on July 23. "Long term, our view continues to be that Tesla is well positioned as a technology platform to leverage end-to-end AI into a leading position in autonomous driving and humanoid robotics."
Yahoo
18-07-2025
- Business
- Yahoo
Citizens Financial Group Inc (CFG) Q2 2025 Earnings Call Highlights: Strong Financial ...
Net Interest Income (NII): Increased by 3.3% sequentially, driven by margin expansion and interest-earning asset growth. Net Interest Margin (NIM): Expanded by 5 basis points to 2.95%. Fee Growth: Increased by 10% linked quarter, with strong performance in wealth, card, and mortgage fees. Operating Leverage: Achieved positive operating leverage of about 5%. EPS: $0.92 for the second quarter, a 19% improvement over Q1. Expenses: Broadly flat, contributing to improved efficiency ratio below 65%. Loan Growth: Net loan growth across consumer, private bank, and commercial sectors. Capital Position: CET1 ratio at 10.6%, with $200 million in stock buybacks executed during the quarter. Private Bank Loan Growth: Added $1.2 billion in loans, ending the quarter at $4.9 billion. Deposit Growth: Average deposits up 1%, with a focus on optimizing deposit funding. Net Charge-Offs: 48 basis points, down from 51 basis points in the prior quarter. Allowance for Credit Losses: Down slightly to 1.59%. Shareholder Returns: $385 million returned to shareholders in the second quarter, including dividends and share repurchases. Warning! GuruFocus has detected 7 Warning Signs with CFG. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Citizens Financial Group Inc (NYSE:CFG) reported strong financial results for the second quarter of 2025, exceeding expectations despite macroeconomic uncertainties. Net interest income (NII) grew by 3.3% sequentially, driven by a 5 basis point expansion in net interest margin (NIM) and net loan growth across consumer, private bank, and commercial sectors. Fee income increased by 10%, with significant contributions from wealth management, card services, and mortgage operations. The company maintained good expense discipline, resulting in 500 basis points of operating leverage, and continued meaningful share repurchases. CFG's balance sheet remains robust, with strong capital, liquidity, and credit reserve positions, supporting strategic initiatives and growth targets. Negative Points The capital markets division faced challenges due to macroeconomic uncertainty, with weaker debt capital markets and delays in significant M&A deals. Spot deposits were somewhat impacted by the timing of inflows and outflows, despite average deposits showing growth. The company faces ongoing uncertainty related to tariffs, which could impact economic conditions and market trends. CFG's allowance for credit losses slightly decreased, reflecting ongoing concerns about the economic forecast, including a mild recession and macro impacts from tariffs. The company is still managing the runoff of non-core portfolios, which continues to be a headwind, although it is expected to ease in the second half of the year. Q & A Highlights Q: Bruce, you saw a nice loan growth in the quarter. Can you talk about what you're seeing in terms of growth in the private bank and other areas, and how you're feeling about sentiments from borrowers for the remainder of the year? A: Bruce Van Saun, CEO: We saw net loan growth across commercial, consumer, and private banks, which exceeded non-core rundown actions. We're optimistic about the macro environment and expect continued growth, particularly in the private bank and consumer sectors. Brendan Coughlin, Head of Consumer Banking, added that the HELOC product is performing well, and the new credit card launch is expected to drive growth. Q: Given the potential for a more dovish Fed, what steps are you taking to lock in the higher end of your net interest margin expectations? A: John Woods, CFO: We have a range of 3.25% to 3.50% for our net interest margin over the medium term. We're confident in this range and are opportunistically putting on hedges to protect against downside risks. These hedges are above where we expect the Fed to settle, providing stability. Q: How are you thinking about deposit growth versus optimizing the mix in the second half of the year? A: John Woods, CFO: We're pleased with our low-cost deposit trends and expect stable to improving mix while growing deposits to support loan growth. Brendan Coughlin added that retail core relationship deposits are growing, providing flexibility on yield management. Q: Can you elaborate on the Reimagining the Bank initiative and how it differs from previous TOP initiatives? A: Bruce Van Saun, CEO: This initiative is broader, focusing on how we serve customers and run the bank using new technologies like AI. Brendan Coughlin will lead this multi-year transformational program, aiming to simplify the business model and improve customer experience. Q: What are your thoughts on the M&A backdrop and Citizens' potential role in consolidation? A: Bruce Van Saun, CEO: Our focus is on driving organic growth and improving ROTCE. While we're open to attractive opportunities, any M&A would need to meet high financial, strategic, and cultural standards. For now, we're concentrating on executing our current growth initiatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Arca Continental SAB de CV (EMBVF) Q2 2025 Earnings Call Highlights: Strong Revenue Growth ...
Consolidated Revenue: Increased 8% in the quarter and 10.1% year-to-date. Consolidated EBITDA: Rose 8.1% in the quarter and 9% year-to-date, with margins of 20.7% and 19.8% respectively. Net Income: Increased 1.2% in the quarter to MXN5.5 billion; year-to-date net income rose 4.9% to MXN9.6 billion. Mexico Unit Case Volume: Declined 4.8% in the quarter and year-to-date. Mexico EBITDA Margin: 24.6% in the quarter and 22.9% year-to-date. South America Revenue: Grew 11.8% in the quarter and 18.8% year-to-date. South America EBITDA: Increased 29.2% in the quarter and 33% year-to-date, with margins of 17.3% and 18.7% respectively. US Operations Revenue: Rose 3.9% in the quarter and 2.2% year-to-date. US Operations EBITDA: Increased 9.1% in the quarter and 6.7% year-to-date, with margins of 17.8% and 17% respectively. Cash and Equivalents: MXN26.6 billion as of June. Total Debt: MXN57.4 billion, resulting in a net debt-to-EBITDA ratio of 0.6 times. CapEx: Totaled MXN8.3 billion, representing 6.9% of sales. Dividend Distribution: Total of MXN7.62 per share, reflecting a payout ratio of 66% and a dividend yield of 3.8%. Warning! GuruFocus has detected 7 Warning Signs with CFG. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Arca Continental SAB de CV (EMBVF) reported an 8% increase in consolidated revenue for the second quarter, driven by effective pricing strategies and favorable FX effects. The company's EBITDA rose by 8.1% in the quarter, with a margin of 20.7%, marking the 29th consecutive quarter of EBITDA growth. Strong performance in the US operations contributed significantly to the company's financial results, with Coca-Cola Southwest Beverages achieving a 9.1% increase in EBITDA. The company announced the opening of its largest distribution center in Mexico, enhancing its operational footprint and service capabilities. Arca Continental SAB de CV (EMBVF) achieved important milestones in its sustainability agenda, including partnerships for plastics recycling and improvements in sustainability risk management ratings. Negative Points Total consolidated volume declined by 2.7% in the quarter, impacted by adverse weather conditions and softer consumer demand in some markets. In Mexico, unit case volume declined by 4.8%, affected by challenging comparisons and adverse weather conditions. The company's net income for the quarter increased only by 1.2%, with a 60 basis points contraction in the net profit margin. Ecuador faced rising security concerns that disrupted consumer mobility and shopping behavior, leading to a 3.1% decline in total volume. Despite revenue growth, the company experienced a contraction in volume performance in key markets, particularly in Mexico, due to macroeconomic headwinds and adverse weather. Q & A Highlights Q: Arturo, you reiterated the guidance for the year. Given the current operating dynamics and the sequentially lower pressure on margins from Mexico, do you still expect to close the year with flattish margins for 2025, specifically in Mexico? A: The situation for margins in Mexico was mostly impacted by volume performance. We are confident in recovering profitability throughout the year as volumes improve, which we expect to happen in the third quarter. We continue our cost control initiatives and leverage our hedging strategies for main raw materials. Our goal is to protect the margin for the full year, and we are optimistic about achieving this. Q: Can we expect any additional dividend if no M&A materializes throughout the next few months? A: We have already distributed two dividends, resulting in a 67% payout ratio. Any additional dividends will depend on the Board's decision. In the absence of M&A, they may approve an additional dividend later in the year. Q: Regarding Mexico, how much of the pressure seen year-to-date is structural versus related to temporary factors like weather or government incentives? A: Several factors impacted Mexico's performance, including tough comparisons to last year, adverse weather, and slower economic conditions. The traditional channel declined significantly, while the modern channel was almost flat. We don't see price as a factor affecting elasticity, and we aim to align pricing with inflation. Q: Could you provide more color on the distribution center in Jalisco and any labor issues in the US? A: The distribution center in Tonala, Jalisco, opened recently and will enhance our operational footprint. In the US, labor has stabilized, and our biggest project will open next year. We are not facing significant labor shortages currently. Q: What was the difference in strategy that led to improved profitability in the US this quarter? A: Our strategy in the US focuses on solid execution, prioritizing profitable packages, and disciplined expense management. We have seen growth in single-serve packages and have optimized promotions and pricing strategies. This approach, combined with lower OpEx due to reduced direct marketing expenses, has improved margins. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información
Yahoo
17-07-2025
- Sport
- Yahoo
Watch prestigious Palermo pre-season friendly live on CITY+
CITY+ subscribers can watch our prestigious pre-season friendly against Palermo live next month. We take on our sister CFG club in the inaugural Anglo Palermitan Trophy on Saturday 9 August, with kick-off set for 20:00 (UK). Pep Guardiola's side will be looking to step up preparations ahead of the 2025/26 campaign with new signings Rayan Ait-Nouri, Marcus Bettinelli, Rayan Cherki and Tijjani Reijnders all keen to impress on the eve of their first campaign with the Blues. For Palermo, it's a perfect way to kick off their anniversary celebrations as they mark 125 years since their inception as the Anglo Palermitan Athletic & Football Club. The exciting encounter also marks the home debut for their new head coach and Italian World Cup winner Filippo Inzaghi, who will take charge of the team in front of the Rosanero fans at the Renzo Barbera for the first time. In the build-up to the game, until Friday 8 August, there's an early bird offer available for CITY+ where you can subscribe annually for £19.99 and save £15. Just use the code PALERMO15 to access the game plus a full range of fantastic behind-the-scenes content from the heart of the club. Alternatively, you can pay £4.99 for the month and cancel anytime. WATCH: SATURDAY 9 AUGUST: Palermo v City - Pre-season friendly You can access CITY+ through either or our official app as anticipation builds ahead of a new campaign for the boys in sky blue. There's also the option to cast the match onto your TV from mobile devices. As well as coverage of the clash as it happens, those with an active CITY+ subscription will also have access to a full-match replay bringing you the full 90 minutes of the game from Italy. That means if you're unable to watch the game live, you can do the next best thing and check it out later that evening.
