Citi Upgrades U.S. Equities Amid Geopolitical Uncertainty

Citi upgraded U.S. equities to overweight from neutral, kept UK overweight and cut emerging markets to neutral, citing geopolitical uncertainty.
Analyst Beata Manthey said the shift is a tactical defensive tilt due to limited visibility after the U.S.–Iran ceasefire and a Hormuz blockade.
Citi expects near‑term oil price rise before a year‑end decline and projects EPS growth of 16% in 2026 versus a 20% consensus.
Sector changes include Materials upgraded to overweight and Communication Services downgraded to underweight, with earnings growth expected to narrow to large‑cap sectors.