** Citi Research upgrades regional lender Flagstar Financial FLG.N to "buy" from "neutral" and raises PT to $15 from $13.50
** Brokerage says with economic growth concerns controlling the current narrative, FLG's recent valuation compression offers investors opportunity to buy a bank with notable amount of potential upside
** Citi expects FLG valuation to improve given a line of sight to profitability return by Q4 2025
** Says lowering deposit costs and operational expenses are key to ending 2025 with a profitability ramp
** Citi's new PT on FLG represents 39% upside to stock's last close
** Four of 16 brokerages rate the stock "buy" or higher and 12 "hold"; median PT $13.50 - data compiled by LSEG
** As of last close, FLG stock up 15.6% YTD
(Reporting by Arasu Kannagi Basil in Bengaluru)
((ArasuKannagi.Basil@thomsonreuters.com;))
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