For some time now, my thesis on Citizens Financial (CFG) has been about a bank that is transforming from a perennial operational underperformer into a much better-run bank. Quarter by quarter and year by year, management continues to build the case for believing in that transformative potential. Now, heading into 2022, Citizens looks well-positioned with respect to loan growth and sensitivity, and if management can execute on further efficiency, competitiveness, and quality drives, the upside could be meaningful.
In response to better quarters and better positioning for the future (including multiple recent acquisitions), my long-term core estimated growth rate has headed higher, and with that my fair value estimate. These shares have continued to outperform since my last update (most of that on a year-to-date basis, as rate expectations have headed higher), but I still see low double-digit annualized total return potential, making this a name well worth considering.
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Citizens Financial Undervalued Ahead Of What Should Be Further Positive Transformation
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