Citi analyst Keith Horowitz upgrades $U.S. Bancorp (USB.US)$ to a buy rating, and adjusts the target price from $49 to $65.
According to TipRanks data, the analyst has a success rate of 77.4% and a total average return of 16.4% 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:
U.S. Bancorp had recently underperformed relative to its peers due to concerns regarding the deterioration in return on tangible common equity, which was attributed to increased investment spending, disappointing payment trends, and underperformance on net interest margin. However, it's believed that the bank has navigated through the heightened investment phase and is poised to achieve positive operating leverage as the growth in expenses is anticipated to decelerate. Moreover, the net interest margin is expected to self-correct over time, benefiting from lower deposit costs driven by a higher commercial mix and opportunities for repricing fixed assets.
Following a series of investor meetings in Minneapolis with top executives of U.S. Bancorp, analysts noted a growing confidence in the bank's accelerating revenue growth and strengthening returns. However, they anticipate that significant upside catalysts for the shares may be limited at present.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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