Jefferies Upgrades U.S. Bancorp (USB) to Buy

November 28, 2016 7:42 AM EST
Get Alerts USB Hot Sheet
Price: $51.90 +1.05%

Rating Summary:
    10 Buy, 22 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
Trade USB Now!
Join SI Premium – FREE

Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.

Jefferies upgraded U.S. Bancorp (NYSE: USB) from Hold to Buy with a price target of $57.00 (from $48.00) to reflect post-election stock/EPS dynamics.

Analyst Ken Usdin commented, "We like USB for its consistent earnings performances, diversified income streams, and goldilocks positioning (large scaled businesses, but not a G-SIB level bank). We believe its post-election relative valuation understates its best-in-class return on equity. USB should benefit from higher rates and a lower Federal tax rate, but to a lesser extent vs. its peers. However, we believe this dynamic is already reflected in shares, which have underperformed its peer group by 9% since the election (+9% for USB vs. +18% for largecap banks). If new pro-growth policies help spending trends and U.S. GDP, USB’s payments businesses (16% of revs.) should benefit directly. Additionally, pension costs could benefit in ’17 if long-term rates continue to move higher through year-end. As of 12/31/15, a 100bp increase in the pension discount rate could boost net income by 1%."

For an analyst ratings summary and ratings history on U.S. Bancorp click here. For more ratings news on U.S. Bancorp click here.

Shares of U.S. Bancorp closed at $49.42 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Analyst Comments, Analyst PT Change, Upgrades

Related Entities

Jefferies & Co, Earnings

Add Your Comment