Opportunity Equity Weekly Update for 7/11/2025 – 7/18/2025

Citi Rises on Strong Earnings while Dave & Busters Appoints a New CEO

Last week, the Opportunity Equity Strategy’s representative account gained 0.52%, outperforming the S&P 500’s 0.61% rise. (Exhibit 1). The strategy ended the week up 10.38% YTD, 255 basis points ahead the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 7/18/25¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (7/11- 7/18)	0.52%	0.61%
MTD	5.34%	1.54%
QTD	5.34%	1.54%
YTD	10.38%	7.83%
1 Year	24.55%	15.10%
5 Year	11.70%	16.06%
10 Year	8.59%	13.47%
Inception (annualized since 6/26/00)	8.00%	8.02%

Citigroup Inc. (C) reached a new 52-week high after announcing strong earnings that beat on the top and bottom line. The company delivered revenue of $22B vs. $21B expected and EPS of $1.96 vs. $1.60 expected. Revenue growth was broad-based, with all five business lines expanding for the third consecutive quarter. Citi also raised its FY25 revenue guidance to $84B, the high end of its prior range, and increased its net interest income (ex-markets) growth outlook to 4%, up from 2%–3%. The company repurchased $2B in shares during the quarter (about 1% of market cap), bringing its year-to-date total to $3.5B. Wells Fargo increased their price target from $110 to $115 (23% upside), citing a more visible path towards value creation and Citi’s targeted 10-11% return on tangible common equity (ROTCE) by FY26. Wells Fargo expects tangible book value (TBV) to rise from $94 in 2Q25 to $119 by FY27, alongside a price-to-TBV multiple expansion from ~1x to 1.25x. Based on these assumptions, Wells Fargo estimates Citi’s stock could reach $150 (61% upside) by FY27.

Alibaba Group Holding Ltd (BABA) rose through the 50-day and 200-day moving averages, following the Hang Seng’s 2.84% move higher. Meanwhile, Goldman Sachs lowered their price target from $150 to $147 (22% upside), citing expected earnings headwinds from increased competition in the food delivery market.

Coinbase Global, Inc. (COIN) reached a new all-time high following the launch of “Base App,” a rebranded and expanded version of the traditional Coinbase Wallet. In addition to standard wallet functionality, Base App will include features such as social media integration, access to decentralized applications, content creation and discovery tools, and encrypted messaging.

Nvidia Corp. (NVDA) reached a new all-time high after the reversal of a ban that had previously prohibited sales of its export-compliant H20 chip to China. Stifel increased their price target from $180 to $202 (17% upside).

Goldman Sachs increased their price target on Norwegian Cruise Line Holdings Ltd. (NCLH) from $18 to $26 (10% upside), citing stronger-than-expected cruise demand despite macro uncertainty. Additionally, Goldman sees a favorable FY26 comparative sales setup as NCLH laps dry dock disruptions and weakness in long-term European itineraries.

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 7/11/25 - 7/18/2025

Name	Type	Net Return
Citigroup Inc.	Equity	7.7%
Alibaba Group Holding Ltd	Equity	12.7%
Coinbase Global, Inc.	Equity	8.4%
Nvidia Corp	Equity	4.5%
Norwegian Cruise Line Holdings Ltd.	Equity	4.3%

Morgan Stanley lowered its price target on UnitedHealth Group (UNH) from $374 to $342 (21% upside) and maintained an overweight rating. Morgan Stanley expects UNH to issue below-consensus FY25 EPS guidance on its upcoming earnings call. Additionally, UNH shares traded lower following Elevance Health’s earnings miss and downward revision to FY25 guidance, which weighed on the broader managed care sector. CVS Health Corp (CVS) fell in sympathy.

Seadrill Limited (SDRL) followed Brent’s -1.53% move lower. BTIG increased their price target from $28 to $33 (17% upside).

Dave & Buster's Entertainment, Inc. (PLAY) appointed Tarun Lal as their new CEO. Lal brings 25 years of experience from Yum! Brands, the parent company of KFC, Pizza Hut, and Taco Bell. Lal most recently served as President of KFC U.S.

Bloomberg reported that Kosmos Energy Ltd. (KOS) is in talks with banks to raise $1 billion in secured debt to help address upcoming debt maturities over the next three years.

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 7/11/2025 - 7/18/2025

Name	Type	Net Return
UnitedHealth Group	Equity	-6.9%
Seadrill Limited	Equity	-7.7%
Dave & Buster's Entertainment, Inc.	Equity	-7.2%
CVS Health Corp	Equity	-4.4%
Kosmos Energy Ltd.	Equity	-6.9%

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As of prior week's market close unless otherwise stated.

¹The performance figures for the representative Opportunity Equity account reflect the deduction investment management fees and certain other expenses. Returns greater than 1 year are annualized.

For additional information about Opportunity Equity Strategy performance, please click on the Opportunity Equity Strategy Composite Performance Disclosure. Past performance is no guarantee of future results.

²Significant Contributors and Detractors are based on holdings that had the greatest effect on representative account performance for the week. Holdings that have been in the portfolio since the end of the most recent calendar quarter are identified by name. The net return shown above for each individual security represents the change in market price of the security during the week, according to a third-party pricing service, or for the partial period held in the portfolio during the week.  Net returns also include any purchases or sales that were made during the week. For information on how Contributor/Detractor data were calculated and a list showing the contribution to the Strategy’s weekly performance of each investment held at such quarter end, contact us.

Any views expressed are subject to change at any time, and Patient Capital Management disclaims any responsibility to update such views. There is no guarantee that market trends discussed herein will continue. The information presented should not be considered a recommendation to purchase or sell any security and should not be relied upon as investment advice. It should not be assumed that any purchase or sale decisions will be profitable or will equal the performance of any security mentioned. Past performance is no guarantee of future results, and there is no guarantee dividends will be paid or continued. References to specific securities are for illustrative purposes only. Portfolio composition is shown as of a point in time and is subject to change without notice. Content may not be reprinted, republished or used in any manner without written consent from Patient Capital Management. 

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