Bank of America Securities analyst Ebrahim Poonawala has reiterated their bullish stance on USB stock, giving a Buy rating today.
Ebrahim Poonawala has given his Buy rating due to a combination of factors including the new leadership at US Bancorp and the potential for improved financial performance. The new CEO, Gunjan Kedia, has expressed a strong commitment to turning around the company’s stock performance, which has lagged behind the bank index over the past decade. This sense of urgency from the leadership is seen as a positive catalyst for change.
Additionally, the stock’s current valuation appears attractive compared to its peers, with a potential for improved execution and increased investor confidence. The bank’s proven expense discipline, potential for a higher net interest margin, and a gradually rising capital return are also contributing factors. If management achieves its medium-term return on assets target, it could lead to significant earnings growth, suggesting further upside potential for the stock over the next 18-24 months.
In another report released today, Barclays also maintained a Buy rating on the stock with a $56.00 price target.
Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of USB in relation to earlier this year.