In a report released yesterday, Ebrahim Poonawala from Bank of America Securities reiterated a Buy rating on US Bancorp, with a price target of $55.00.
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Ebrahim Poonawala’s rating is based on the strong performance of US Bancorp in the third quarter, where the company exceeded expectations in core earnings per share and demonstrated growth in fee income and net interest income. This performance was further supported by lower credit costs, indicating a solid financial footing despite a challenging market for bank stocks.
Additionally, the outlook for the fourth quarter appears promising, with management expressing confidence in stable net interest income and controlled noninterest expense growth. The company’s strategic targets, including a significant return on assets and anticipated double-digit earnings growth, add to the attractiveness of the stock. Furthermore, US Bancorp’s robust capital position and plans for increased share buybacks signal a commitment to shareholder returns, reinforcing the Buy rating.
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 42 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.