12:03 PM EDT, 06/06/2024 (MT Newswires) -- Citigroup's ( C ) management target of topping a 10% return on tangible common equity, or ROTCE, is "quite achievable," signaling potential for a 60% share price rally, BofA Securities said Thursday in a report.

"We have generally agreed with CEO Jane Fraser's strategy to de-risk/simplify the bank, make hard investment choices, create a leaner Citigroup ( C )," the report said, ROTCE may reach 10% in fiscal 2026, BofA said

investors' increased confidence in the achievability of management's targets and visibility into the competitive positioning of each of the bank's business segments may drive a rerating to tangible book value, or TBV, at a faster pace, implying 60% upside by 2025, BofA said.

"While execution risk is significant, we see the hiring of senior external talent as a positive, starting with Andy Sieg who is responsible for turning around the deeply unprofitable and balance sheet reliant wealth business," the report said.

"More recently, the announcement of Viswas Raghavan (a well-regarded leader from JPMorgan, started at Citigroup ( C ) earlier this week) as head of the banking business, increases the odds for improved profitability," the report said.

BofA has a buy rating on Citigroup ( C ) and a $75 price target.

Price: 61.74, Change: -0.03, Percent Change: -0.06