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Piper Jaffray Adujsts Estimates on U.S. Bancorp (USB) - Cuts PT to $48

January 19, 2016 7:11 AM EST
Get Alerts USB Hot Sheet
Price: $44.70 +1.59%

Rating Summary:
    14 Buy, 22 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 10 | New: 11
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Piper Jaffray maintained an Overweight rating on U.S. Bancorp (NYSE: USB), and cut the price target to $48.00 (from $49.00), following a higher tax rate and more conservative interest rate assumptions. Piper dropped it's FY16E EPS to $3.36 from $3.42 and FY17E EPS to $3.67 from $3.76. Estimates are slightly below consensus due to weaker revenue growth assumptions, offset by slower expense growth.

Analyst Kevin Barker commented, "We reiterate our Overweight rating on USB and adjust our price target to $48 from $49 to take into account slightly lower EPS estimates. We adjusted our FY16E EPS to $3.36 from $3.42 and FY17E EPS to $3.67 from $3.76 due to a higher tax rate and more conservative interest rate assumptions. We are now assuming the Fed only moves rates one more time in 2016 before leaving rates static. While USB screens as being one of the least asset sensitive large cap regional banks, the more conservative assumption caused our NIM to remain relatively static through 2017. USB remains one of favorite names to own given the company remains committed to generating positive operating leverage, loan growth continues to be stronger than most peers and it remains one of the most diversified, best managed banks within our coverage."

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 $39.05 yesterday.



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