Investing.com -- Citigroup shares have dropped 3.1% in premarket trading on Thursday after the bank's investor day presentation revealed its return on tangible common equity targets.

The bank said it is targeting ROTCE of 11%-13%, excluding notable items, in 2027 and 2028, before reaching a medium-term range of 14%-15% over the 2029-2031 period. Citi continues to target 10%-11% ROTCE for 2026.

The figures may have disappointed investors who had been expecting a more ambitious near-term commitment.

Bank of America, in a preview note ahead of the event, said investors "expect Citi to target ~15% medium-term ROTCE, viewing anything materially higher as an upside surprise."

The bank maintained its Buy rating and $150 price target on the stock, with its own fiscal year 2028 ROTCE forecast sitting at 13%.

BofA had framed CEO Jane Fraser's tenure in stark terms ahead of the presentation, saying she has taken Citi "from something akin to an 'F' student to a 'C' student" since taking the helm in 2021, with the stock re-rating from 0.9 times price-to-tangible book value to 1.2 times over that period.

Piper Sandler analysts said in a preview note this week that investors would “want to see a credible, specific, and quantifiable roadmap for how C improves from ~ 10% to 11% ROTCE in 2026E to an even more competitive return profile.”

“Key areas to watch will be the specificity and ambition of any new target (we believe the market is coalescing around a 15% longer-term ROTCE), clarity on capital return capacity, and timelines,” Piper Sandler added.