Oppenheimer analyst Chris Kotowski maintains $U.S. Bancorp (USB.US)$ with a buy rating, and adjusts the target price from $54 to $57.
According to TipRanks data, the analyst has a success rate of 72.6% and a total average return of 23.6% over the past year.
Furthermore, according to the comprehensive report, the opinions of $U.S. Bancorp (USB.US)$'s main analysts recently are as follows:
The pace of interest rate reductions is anticipated to be favorable for the net interest margin at mid-cap banks and presents a mixed scenario for larger banks. U.S. Bancorp, with its substantial proportion of interest-bearing deposits, is expected to adjust swiftly as rates decrease. This is projected to lead to significant expansion in net interest margin in 2025, which is not yet captured in the consensus estimates.
Anticipations are set for the Q3 regional bank results to signify an ongoing shift in fundamentals that started to emerge in the previous quarter. It is projected that downward revisions in EPS estimates due to a lower interest rate environment and subdued loan activity could mitigate risks to the sector's earnings expectations. A more favorable outlook for regional banks is emerging, suggesting that interest rate reductions could alleviate funding cost pressures, bolster loan demand, enhance credit conditions, especially in commercial real estate, and potentially drive an increase in the sector's earnings multiple.
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