Citizens Financial Group (CFG) has the potential for continued outperformance on "superior" return on tangible common equity, or ROTCE, improvement and scope for growth, Bank of America Securities said in a Thursday research report.

The company's valuation is compelling, given multiple catalysts to support EPS growth. BofA's 300-plus basis-point ROTCE growth to 14.6% by 2028 could be driven by roll-off of terminated swaps, back book repricing, operating leverage linked to recent investments, and focus on ramping franchise productivity, according to the note.

The company's franchise investments in recent years have created potential for outsized loan or revenue growth. Net interest margin is also likely to expand steadily. BofA expects NIM growth for fiscal 2026 and 2027 of 3.18% and 3.25%, respectively, analysts wrote.

The company is also poised to capitalize on rebounding deal activity, particularly as sponsor activity on monetization and investments gains momentum, the brokerage stated.

The brokerage said it guided for 2026 and 2027 revenue growth of 8.8% and 5.7%, respectively. It now expects 2026 and 2027 EPS of $5.17 and $6.12, respectively, from $4.94 and $6.18 earlier.

BofA said it upgraded the stock to buy from neutral and raised its price target to $65 per share from $52.

Price: 52.58, Change: +0.57, Percent Change: +1.10