On Oct 18, major Wall Street analysts update their ratings for $U.S. Bancorp (USB.US)$, with price targets ranging from $51 to $59.
Morgan Stanley analyst Betsy Graseck maintains with a buy rating, and maintains the target price at $57.
Barclays analyst Jason Goldberg maintains with a buy rating, and adjusts the target price from $52 to $57.
Evercore analyst John Pancari maintains with a hold rating, and maintains the target price at $51.
Oppenheimer analyst Chris Kotowski maintains with a buy rating, and adjusts the target price from $57 to $59.
Stephens analyst Terry McEvoy maintains with a hold rating, and adjusts the target price from $47 to $52.
Furthermore, according to the comprehensive report, the opinions of $U.S. Bancorp (USB.US)$'s main analysts recently are as follows:
The decline in U.S. Bancorp's stock following the investor day last month was attributed to concerns over potential M&A activities. However, during the Q3 earnings conference, management clarified that M&A was not a focus and should not be considered a priority. Subsequent to the Q3 earnings surpassing expectations, forecasts for Q4 and FY25 earnings per share have been adjusted to higher figures.
Following the third-quarter report, it was noted that U.S. Bancorp's earnings exceeded expectations as net interest income surpassed projections and provisions were lower than anticipated.
U.S. Bancorp's Q3 earnings surpassed expectations, with core pre-provision net revenue reaching $2.8B, slightly above the consensus. This was attributed to a 2% increase in net interest income, balanced core expenses, and despite a 2% dip in fee income. Furthermore, an optimistic outlook is reflected in the management's updated net interest income guidance for FY24, which suggests figures at the top range of prior forecasts, considering the anticipation of additional interest rate reductions by year-end and the current subdued loan growth.
U.S. Bancorp has been recognized for consistently delivering some of the best returns in the industry, although it has faced challenges with net interest income (NII) and operating leverage for more than a year. NII experienced a downward trend for four consecutive quarters, seeing a total decrease of 14% from the first quarter of 2023 to the first quarter of 2024, before it finally saw a slight increase in the following two quarters. Similarly, operating leverage was negative for five quarters in a row. However, after accounting for a one-time loss related to securities portfolio restructuring, there was a marginal improvement. With recent signs of growth in NII and an uptick in operating leverage, there is optimism for continued positive performance.
The analyst notes that U.S. Bancorp has shifted from a negative to a positive stance with respect to net interest income growth and operating leverage, indicating what may be the start of a multi-year turning point. Estimates have been modestly increased.
Here are the latest investment ratings and price targets for $U.S. Bancorp (USB.US)$ from 7 analysts:
Note:
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