More Companies Like PayPal and Shopify (SHOP) Are Choosing AI over Workers

Written by Emily J. Thompson, Senior Investment Analyst

C-1.79%

PYPL-0.93%

MU+0.52%

Source: TipRanks

Updated: Apr 17 2025

0mins

Source: TipRanks

AI's Impact on Employment: Companies like PayPal and Shopify are increasingly automating jobs with AI, leading to significant reductions in workforce needs and operational costs; for instance, PayPal reports that AI manages 80% of its customer service tasks.
Efficiency Gains from AI: Businesses are leveraging AI to enhance productivity, allowing them to double output without increasing staff; examples include United Wholesale Mortgage reducing processing times drastically, while firms like ServiceNow promote models that require no additional headcount.

$113.59+Infinity%1D

Analyst Views on C

Wall Street analysts forecast C stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for C is 125.50 USD with a low forecast of 87.00 USD and a high forecast of 146.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

16 Analyst Rating

13 Buy

3 Hold

0 Sell

Strong Buy

Current: 115.660

Low

87.00

Averages

125.50

High

146.00

Current: 115.660

Low

87.00

Averages

125.50

High

146.00

HSBC

analyst

Buy

maintain

$77 -> $87

2026-01-07

Reason

HSBC

analyst

Price Target

$77 -> $87

AI Analysis

2026-01-07

maintain

Buy

Reason

HSBC raised the firm's price target on Citi to $87 from $77 and keeps a Buy rating on the shares. Bank stocks have pulled back, offering selective opportunities to add exposure, says the analyst, who raised the firm's 2025-26 adjusted EPS estimates among the group by about 1%-7% to incorporate higher net interest income, investment banking fees, and share repurchase estimates.

TD Cowen

Hold

maintain

$110 -> $130

2026-01-07

Reason

TD Cowen

Price Target

$110 -> $130

2026-01-07

maintain

Hold

Reason

TD Cowen raised the firm's price target on Citi to $130 from $110 and keeps a Hold rating on the shares. The firm adjusted bank targets as part of a Q4 earnings preview. TD expects "solid" Q4 reports for the banks with continued balance sheet growth, repricing tailwinds, and a "likely more dovish" Federal Reserve chair in 2026. These "durable tailwinds" should lift bank stocks in 2026, the analyst tells investors in a research note.

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Wolfe Research

NULL

Outperform

maintain

$121 -> $141

2026-01-07

Reason

Wolfe Research

Price Target

$121 -> $141

2026-01-07

maintain

NULL

Outperform

Reason

Wolfe Research raised the firm's price target on Citi to $141 from $121 and keeps an Outperform rating on the shares as part of the firm's Top 10 Themes for 2026 note on the Banks, Brokers, and Alternative Managers. Heading into 2026, the firm notes Retail Brokers and Alts are its favorite subsectors.

Truist

Buy

upgrade

$123 -> $129

2026-01-06

Reason

Truist

Price Target

$123 -> $129

2026-01-06

upgrade

Buy

Reason

Truist raised the firm's price target on Citi to $129 from $123 and keeps a Buy rating on the shares. Core themes for the U.S. large-cap banks feel similar to last year's, including ROTCE expansion levers, net interest margin healing, capital return, positive operating leverage capacity, and whether GSIBs can continue to outperform regionals, the analyst tells investors in a research note. Each of the stocks in the firm's large-cap banks universe has an attractive mix of EPS growth and ROTCE expansion drivers, which set up a solid outlook for 2026, Truist says.

About C

Citigroup Inc. is a global diversified financial services holding company. The Company’s segments include Services, Markets, Banking, Wealth and U.S. Personal Banking (USPB). The Services segment includes Treasury and Trade Solutions (TTS) and securities services. TTS provides an integrated suite of tailored cash management, trade and working capital solutions to multinational corporations, financial institutions and public sector organizations. The Markets segment provides corporate, institutional and public sector clients around the world with a full range of sales and trading services across equities, foreign exchange, rates, spread products and commodities. The Banking segment includes investment banking, which supports client capital-raising needs to help strengthen and grow their businesses. The Wealth segment includes Private Bank, Wealth at Work and Citigold and provides financial services to a range of client segments. USPB segment includes branded cards and retail services.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.