Citi Research’s U.S. Equity Strategy Large-Cap recommendation list

Citi analysts published their U.S. Equity Strategy Large-cap recommendation list of 21 stocks.

These are U.S. buy-rated large cap stocks with a market cap above $15B.

Scott Chronert, Citi Research head of U.S. equity strategy, said the team considers “growth prospects relative to the valuation setup, health of the balance sheet, as well as where stocks fall within our SIGN preferences, thematic, and factor work.”

Analysts look for operating leverage with impacts on profitability. They also bias toward analysts’ top picks, “but maintain flexibility to align buy-rated stocks with our market, sector, and thematic views.”

The list has yielded 28% year-to-date, up from 21.1% in 2023, compared to 25.4% for the S&P 500’s (SP500) total return year-to-date.

Here is the list, broken down by sector:

Communication services

• Alphabet (GOOGL) – Price target: 216.00; EPS estimates for 2025: $9.11

Consumer discretionary

• Royal Caribbean Cruises (RCL) – Price target: 257.00; EPS estimates for 2025: $14.50
• Amazon.com (AMZN) – Price target: 252.00; EPS estimates for 2025: $8.46

Consumer staples

• Walmart (WMT) – Price target: 98.00; EPS estimates for 2025: $2.82
• Constellation Brands (STZ) – Price target: 305.00; EPS estimates for 2025: $14.84

Energy

• Schlumberger NV (SLB) – Price target: 54.00; EPS estimates for 2025: $3.39

Financials

• Huntington Bancshares (HBAN) – Price target: 21.00; EPS estimates for 2025: $1.40
• LPL Financial Holdings (LPLA) – Price target: 310.00; EPS estimates for 2025: $19.16

Health care

• Intuitive Surgical (ISRG) – Price target: 567.00; EPS estimates for 2025: $7.76
• Merck & Co. (MRK) – Price target: 130.00; EPS estimates for 2025: $9.30

Industrials

• Delta Air Lines (DAL) – Price target: 65.00; EPS estimates for 2025: $7.12
• Honeywell International (HON) – Price target: 244.00; EPS estimates for 2025: $11.10
• Quanta Services (PWR) – Price target: 348.00; EPS estimates for 2025: $10.05
• Rockwell Automation (ROK) – Price target: 313.00; EPS estimates for 2025: $9.40
• Lockheed Martin (LMT) – Price target: 700.00; EPS estimates for 2025: $28.83

Information technology

• Marvell Technology (MRVL) – Price target: 91.00; EPS estimates for 2025: $2.74
• Snowflake (SNOW) – Price target: 183.00; EPS estimates for 2025: $0.89
• Micron Technology (MU) – Price target: 150.00; EPS estimates for 2025: $10.62

Materials

• CRH Plc (CRH) – Price target: 120.00; EPS estimates for 2025: $6.40

Real estate

• Prologis (PLD) – Price target: 150.00; EPS estimates for 2025: $2.74

Utilities

• Edison International (EIX) – Price target: 86.00; EPS estimates for 2025: $5.72