Morgan Stanley Reiterates Buy Rating on Citizens Financial Group
Morgan Stanley maintains its optimistic outlook on CFG with a $79 price target, a 12.74% upside from the current price.
Key Points
- Morgan Stanley reiterated its buy rating on Citizens Financial Group, Inc. (NYSE:CFG) with a price target of $79 on June 29, 2026.
- Morgan Stanley's $79 price target implies 12.74% upside from Citizens Financial Group, Inc.'s ($CFG) current $70.07 share price.
- Shares of CFG traded near $70.4 on Monday, with a market cap of $29.8 billion and a P/E ratio of 16.7.
- BlackRock, Inc. and Vanguard Capital Management LLC both increased their positions in CFG, while Capital World Investors reduced its holdings.
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Morgan Stanley analyst Manan Gosalia reiterated a buy rating for Citizens Financial Group, Inc. (NYSE:CFG) on June 29, 2026. The firm set a price target of $79, maintaining its positive outlook on the regional bank.
Morgan Stanley vs. the S&P 500
Hypothetical, simulated performance of disclosed positions vs. the S&P 500. Not realized profit and not investment advice. Past performance does not indicate future results. Details.
Other Institutional Activity in Citizens Financial Group
BlackRock, Inc. grew its holdings in Citizens Financial by 1,119,192 shares, ending with 46,700,087 shares valued at about $2.8 billion, marking a 2.5% increase. Capital World Investors, on the other hand, reduced its position by 8,982,654 shares, holding 27,904,054 shares worth roughly $1.67 billion, a decrease of 24.4%. Meanwhile, Vanguard Capital Management LLC opened a new position with 26,864,839 shares valued at approximately $1.61 billion. Invesco Ltd. increased its stake by 192,653 shares to a total of 22,926,809 shares, valued at $1.37 billion, with a 0.8% increase.
Citizens Financial Group, Inc. Stock Up 0.5%
Shares of NYSE:CFG traded near $70.4 on Monday. Citizens Financial Group has a market cap of about $29.8 billion, with a P/E ratio of 16.7 and a forward P/E of 11.0. The stock's 52-week range is between $44.58 and $71.21, with a 50-day moving average of $64.50 and a 200-day moving average of $59.17. The company also has a beta of 1.02.
$CFG price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
Citizens Financial reported revenue of approximately $7.89 billion with a growth of 13.8%. The company achieved a net margin of 25.05% and a return on equity of 7.74%. Its earnings per share stood at $4.22. The next earnings report is expected on July 16, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
6 analysts raised price targets.
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EPS & revenue
EPS beat estimates by 2.8%. Revenue beat estimates by 38.6%.
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Profit surprise
Operating income missed by 15 percent.
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Pre-earnings setup
Bar was high, analysts already very bullish.
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Analyst signal
6 target raises.
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Earnings quality
Gross margin up 5.5 points. Operating margin up 5.3 points. Positive free cash flow.
Earnings Call Summary
Citizens delivered strong first quarter results with earnings per share of one dollar and thirteen cents, beating expectations. The bank grew net interest margin to three point fourteen percent driven by loan growth and improved deposit costs. Management highlighted record capital markets fees, private bank deposits at sixteen point six billion dollars, and progress on the Reimagine the Bank program which is expected to deliver one hundred million dollars in pretax benefits this year.
Guidance Citizens reaffirmed its full year guidance. The company expects net interest income to grow three to four percent in the second quarter and projects net interest margin to reach three point twenty-two to three point twenty-eight percent by year-end. Management also raised its target return on equity from the mid-teens to sixteen to eighteen percent by end of 2027.
Slightly positive report. The quarter was acceptable, but the forward setup is not strong.
Dividend
Citizens Financial Group pays an annual dividend rate of $1.84, yielding 2.61%. The dividend payout ratio is 41.7%.
Insider Buying and Selling at Citizens Financial Group, Inc.
On June 15, 2026, Chief Risk Officer Richard Stein sold 4,913 shares at an average price of $67.65. Earlier, on May 14, 2026, several insiders, including Robert Leary, Christopher Swift, Kevin Cummings, Edward Kelly III, and Michele Siekerka, bought shares in smaller amounts.
Analysts Set New Price Targets
On June 29, 2026, Morgan Stanley maintained a buy rating on CFG with a $79 price target. Truist Securities maintained a hold rating with a $72 target on June 24, 2026. Citigroup also maintained its buy rating with a $78 target on June 23, 2026. Overall, the consensus recommendation for CFG is strong buy, with a mean target price of $74.26 from 17 analysts.
About Citizens Financial Group
Citizens Financial Group, Inc., based in Providence, Rhode Island, is a bank holding company offering retail and commercial banking services across the United States. It operates through Consumer Banking and Commercial Banking segments, providing a wide range of financial products including loans, credit cards, wealth management, and treasury management services. Led by CEO Bruce Van Saun, the company employs around 17,380 people.
Bottom Line
Morgan Stanley's reiterated buy rating on Citizens Financial Group underscores confidence in the bank's potential. With a strong market position and a diverse range of services, CFG remains a key player in the regional banking sector. As always, keep in mind that these ratings and targets are based on past performance and may not reflect current conditions.
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