Keefe, Bruyette & Woods counts financial stocks including Synchrony Financial and Citigroup as its top picks for 2025 as Wall Street looks to extend gains in the new year. The S&P 500 ended 2024 with a gain of 23%, marking the second consecutive year of gains of more than 20%. Stocks took a breather on Tuesday after starting the week higher the previous day. KBW isn’t the only company optimistic about the outlook for bank stocks in the new year. The industry rebounded after Donald Trump was elected in November, with investors viewing it as one of the biggest beneficiaries of possible loosening of regulations. Here’s a closer look at some of the names on the KBW list. The selected companies were all rated “Overweight” by the company. Citigroup’s shares rose more than 36% last year. Analyst David Konrad said key catalysts for the stock include a price-to-earnings ratio of about 30% lower than peers in 2026 and a possible change in rules guiding how much credit capital banks must have. “While the stock has been cheap relative to its peers historically, we believe near-term catalysts such as increased capital markets activity and capital management could lead to a multiple rating,” said Conrad, who has an $85 per share target. The price implies about 17% upside potential in the future. Year-to-date C Mountain Citi stock. Synchrony Financial stock has surged more than 72% in the past year. Analyst Sanjay Sakhrani’s price target of $82 per share implies room for roughly 21% upside going forward. The analyst similarly cited looser rules and regulations as a catalyst for Synchrony stock, specifically pointing to a previously proposed provision that would have capped credit card late fees at $8, a provision first proposed by President Joe Biden . It seemed unlikely the new guidance would take effect under the incoming Trump administration after a Texas judge blocked the rule in May. Other names on the list include Hamilton Insurance Group and Charles Schwab.
KBW names Citigroup and other stocks as its favorite picks in 2025 | Real Time Headlines
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