A veteran banking and financial analyst says a New York City-based US multinational bank is still his top stock pick.
In a new interview on CNBC’s Closing Bell, Wells Fargo analyst Mike Mayo say he is bullish on Citigroup (C) as the bank sees significant transformation.
“I have been highly critical of Citigroup for decades. Their old culture can be characterized as reckless, arrogant and complacent. I think the new culture is one of drive, responsibility, transparency and, frankly, enthusiasm.”
He says the changes are largely down to the bank’s CEO, Jane Fraser.
“The biggest, simplest and most powerful change is going from fifty years of global matrix structure, a hodgepodge, a cobweb management structure with dual responsibility and dual reporting – it was a mess, to this simple structure of five industries reporting to Jane. Jane Fraser gets the credit for that.”
Mayo says he sees a lot of upside for Citi, citing the fact that the lender has shown some of the best revenue growth despite the restructuring.
“Jane Fraser won’t get a Nobel Prize for reshuffling the management structure in this way, but they have implemented the existing plans and can execute them. There is still a lot of upside for Citigroup stock, it’s still my number one pick… Citi is not expecting much deregulation. Citi is undergoing a generational restructuring at a time of generational deregulation.”
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