Street View: Citi's Q2 encouraging, but cost outlook draws 'yellow card'

** Wells Fargo ("overweight," PT: $165) says "World Cup-like performance improvement should continue despite a 'yellow card' around its guide for accelerated 2H expenses" ** "Our view is that the extra spend can better help Citi reach 14%-15% ROTCE" - Wells Fargo

** Morgan Stanley ("overweight," PT: $164) says the selloff provides an attractive entry point, as management actions in 2H26 could mean reaching medium-term targets sooner

** Evercore ISI ("in-line," PT: $143) believes results continue to be encouraging and more than support Citi's progress towards becoming "a sustainable higher-return-profile franchise"

** RBC Capital Markets ("outperform," PT: $150) says Citi followed through on offense again in Q2 vs being defensive in past couple of years as it executed its successful turnaround

** Citigroup C.N beat Wall Street Q2 estimates on surging trading revenue but its shares slid on Tuesday, as investors worried about potentially worse results in H2 on higher expenses

** Median PT of 22 brokerages covering the stock is $154; average rating "buy" - LSEG-compiled data