DA Davidson has affirmed a Buy rating on Citizens Financial Group (NYSE:CFG) and adjusted the stock’s price target upward from $65 to $73. This adjustment comes in the aftermath of Citizens Financial’s strong fourth-quarter 2025 results and is closely aligned with InvestingPro’s fair value estimate, indicating the shares could be modestly undervalued despite their proximity to a 52-week high and a current price of $64.75.
The brokerage highlighted the bank’s commendable quarterly results, describing them as 'strong' while also endorsing a positive longer-term outlook through 2026. DA Davidson’s analysts project earnings per share of $5.00 for the fiscal year 2026, reinforcing confidence in sustained profitability.
Management at Citizens Financial reiterated its medium-term target for return on tangible common equity (ROTCE) in the range of 16-18%, a notable uplift from the 12.8% ROTCE posted in the fourth quarter of 2025. This goal marks a considerable improvement over the current approximate 7% return on common equity. Key elements supporting this enhanced profitability forecast include anticipated net interest margin expansions, ongoing momentum within the private banking segment, and strategic expansion initiatives concentrated in the metro New York market.
As part of its future growth strategy, Citizens Financial plans to implement an efficiency drive dubbed 'Reimagine the Bank.' This program aims to generate approximately $450 million in pretax run-rate cost savings by the end of 2028, which is expected to contribute incrementally toward achieving the ROTCE target.
DA Davidson emphasized that due to the company's strong organic growth trajectory, mergers and acquisitions are not presently a strategic priority. The research house projects that Citizens Financial will lead its peer group in earnings per share growth over the upcoming two years.
Complementing DA Davidson’s outlook, other major analysts have also updated their views following the release of earnings data. Citizens Financial posted an EPS of $1.13 in Q4 2025, surpassing consensus estimates of $1.10, alongside revenues of $2.16 billion, also exceeding projected $2.15 billion. Subsequent to these results, BofA Securities raised its price target to $78 while maintaining a Buy stance. RBC Capital similarly increased its target to $67 and retained an Outperform rating, citing robust quarterly performance and progress within strategic initiatives such as Private Bank growth.
These analyst perspectives underscore growing investor confidence driven by strong earnings results, operational improvements, and promising forward-looking guidance from Citizens Financial Group.