** Shares of U.S. lender Citizens Financial Group up as much as 1.7% to $45.51

** Brokerage Raymond James upgrades stock to "strong buy" from "market perform"

** Brokerage says headwinds from company's received-fixed swap portfolio contracts will begin to subside, boosting net interest income and net interest margin

** Capital markets fees are positioned to increase and potentially outperform current expectations, as backdrop becomes more conducive for M&A and capital raising - brokerage

** Company's private banking initiative should experience accelerating profitability, and credit concerns appear "relatively benign" with metrics likely to improve - brokerage

** Raymond James adds that discounted valuation represents an attractive entry point for a bank that is well-positioned to improve its profitability and EPS growth

** Twelve of 22 brokerages rate the stock "buy" or higher, and 10 "hold"; with a median PT of $49, according to data compiled by LSEG

** Including session moves, stock up about 37% YTD

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))