Jefferies Upgrades U.S. Bancorp (USB) to Buy
- Wall Street again marks new highs in post-election run
- Broadcom Ltd. (AVGO) Tops Q4 EPS by 11c
- Restoration Hardware (RH) Tops Q3 EPS by 4c; Guides Well Below the Street
- Unusual 11 Mid-Day Movers 12/8: (COOL) (TLRD) (DRAM) Higher; (SHIP) (OHRP) (MLSS) Lower
- After-Hours Stock Movers 12/08: (FNSR) (AVGO) (GLPG) Higher; (XTLY) (RH) (DLTH) Lower (more...)
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%."
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
- BMO Capital Cuts Price Target on Comtech Telecom (CMTL) to $16 Following 1Q
- lululemon athletica (LULU): Skeptics Are Quieter - Wedbush
- Instinet Upgrades Juniper Networks (JNPR) to Buy
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Upgrades
Related EntitiesJefferies & Co, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!