Morgan Stanley Names Citigroup Top Bank Pick, Raises Target to $152
Citigroup CEO Jane Fraser received $42 million in total compensation for 2025, a 22% increase driven largely by stock-linked incentives. Morgan Stanley elevated Citigroup to its top large US bank pick and raised its 12-month price target to $152, the highest on Wall Street versus a $135 average.
1. CEO Compensation Rise
Regulatory filings revealed Citigroup CEO Jane Fraser’s total 2025 compensation jumped 22% to $42 million, with the majority awarded through stock-linked incentives. This increase contributed to a combined $258 million paid to the six largest US bank CEOs, representing a $45.3 million annual rise.
2. Morgan Stanley Upgrade
Morgan Stanley designated Citigroup as its top pick among large US lenders and lifted its 12-month price target to $152, the highest on Wall Street. The upgraded target exceeds the current average analyst consensus of $135 by $17, reflecting strong confidence in Citigroup’s outlook.
3. Market Outlook and Drivers
Analysts highlighted robust trading revenues and anticipated benefits from AI-driven service expansions as key factors behind the upgrade. Investor optimism for 2026 dealmaking and lending growth has underpinned Citigroup’s stock outperformance relative to peers.