** Citigroup beat estimates for fourth-quarter profit, fueled by strength in trading and dealmaking, sending shares of the third-largest U.S. lender up 7.4% in afternoon trading on Wednesday

** Median PT of 21 brokerages covering the stock is $86.5 - LSEG data

PLAYING CATCH-UP

** J.P.Morgan ("neutral," PT: $75.5) says Citi's returns are improving due to favorable capital requirements, strong market conditions, and a stable economy boosting credit card loans

** While expenses will remain high in 2025, co plans to reduce them in 2026, but JPM says there is a lack of clarity on how much can be reduced, given co's active hiring

** Piper Sandler ("overweight," PT: $83) says co's rev growth will be supported by favorable conditions in Services and investment banking units and quicker turnaround in wealth management segment

** We expect both net interest income and fees to improve, providing strong foundation for revenue guidance - Piper

** RBC ("outperform," PT: $85) says co is investing heavily in its technological and digital capabilities and needs to be more aggressive in building scale to narrow the profit gap with Bank of America and JPMorgan Chase in the U.S. consumer business

** Morningstar (fair value: $70) says co is achieving lackluster returns despite its significant exposure to credit cards, trading, and investment banking, which should ideally perform well in the current environment

(Reporting by Akriti Shah in Bengaluru)

((akriti.shah@thomsonreuters.com))