Investing.com — Barclays upgraded Citigroup Inc (NYSE:) to “overweight” because the company is at a key inflection point entering 2025, which is not fully captured by Citigroup’s discounted valuation compared to peers.

“We are attracted to C because its recent actions allow it to generate more consistent, high-quality income, in addition to optimizing its capital base,” the analyst said. The bank reduced its international exposure and prioritized efficiency.

Barclays (LON:) has set a price target of $95, with an upside scenario of $102 if economic conditions improve. This increase depends on a favorable backdrop of lower interest rates, low net charge-offs, and controlled costs. The brokerage expects Citigroup’s earnings to reach $10 per share by 2026 in this scenario.

However, the downside case is $60, tied to potential headwinds. This includes deteriorating economic conditions for US consumers, particularly credit cards, and higher than expected Consent Order-related expenses, which could pull 2026 EPS down to $7.50.

Barclays also flagged risks arising from Citigroup’s significant international exposure, particularly in emerging markets with economic and political uncertainty.