Citigroup stock could be a standout among banking peers as President Donald Trump’s tariffs continue to weigh on markets, according to Wells Fargo. The firm reiterated Friday an overweight rating on Citigroup stock, which is also a top pick for Wells Fargo. Its $110 price target suggests nearly 60% upside. Analyst Mike Mayo said that Citigroup is well positioned to navigate potential headwinds from the president’s tariffs given its success navigating the first round of duties during Trump’s first term. Moreover, Mayo added that the stock is also trading at a discount when accounting for its physical assets. C YTD mountain Citigroup stock in 2025. “Citigroup should benefit from tariffs as the company did during Trump 1.0 (Citi is a global intermediary across regions). That’s important at a time when their buybacks could go a lot further at 3/4 of tangible book value,” Mayo said, encouraging investors to “buy the chaos” as Citi shifts “from value destruction to value creation in 2026.” Mayo explained that he anticipates Citi stock will trade based on the value of its physical assets during this period of heightened uncertainty. But that will mean that “opportunistic” stock buybacks will provide a tailwind this year. Citigroup shares have ticked down 1.8% in 2025, as many investors have be fearful of the uncertainty created by policy changes. But the analyst expects the moves will be front-loaded and eventually help the U.S. economy. Other headwinds include the risk of a recession and weakening CEO and consumer confidence, which could “create corporate paralysis.” Banking stocks were some of the most notable beneficiaries on the heels of Trump’s election win last November, given his rhetoric and stance on deregulation. “Deregulation remains the best in 3 decades for banks, and recent appointments reaffirm a pro business administration,” Mayo said, adding that Treasury Secretary Scott Bessent is likely to get rid of “red tape” and let banks make their own lending decisions.
