11:54 AM EDT, 10/16/2024 (MT Newswires) -- Citigroup's ( C ) better-than-expected Q3 results were overshadowed by concerns about regulatory risk, BofA Securities said Wednesday in a report.

Management on the earnings call "initially failed to give a convincing answer with regards to the risk of Citigroup ( C ) being subject to a regulator-imposed asset cap" with a clarification later that the bank isn't under a cap, the report said

A resumption of buybacks "should provide some comfort to investors that the capital return story is still in place," BofA said. "Unfortunately, management's limited ability to provide guidance on the pace of buybacks blunts the self-help thesis."

Management is "making progress in improving segment profitability," notably in the wealth division, while gains are expected in both banking and consumer, the report said.

BofA increased the price objective on Citigroup ( C ) to $78 from $77 and reiterated its buy rating.

Shares of Citigroup ( C ) rose 2.2% in recent Wednesday trading.

Price: 64.03, Change: +1.39, Percent Change: +2.21