Nomura Securities Starts U.S. Bancorp (USB) at Buy, $38 PT

February 6, 2013 8:18 AM EST Send to a Friend
Get Alerts USB Hot Sheet
Price: $44.38 +0.84%

Rating Summary:
    7 Buy, 21 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 12 | New: 23
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Nomura Securities initiates coverage on U.S. Bancorp (NYSE: USB) with a Buy. PT $38.00.

Analyst Keith Murray comments, "US. Bancorp is a consistently solid performer with a diverse business mix that produces best-in-class returns (16% ROE, 165bps ROA in 2012). While we expect USB’s revenue growth to slow on softer mortgage revenues and continued NIM pressure, we still expect USB to post mid- to high-single-digit EPS growth in the next two years as management controls costs (expect 100bps of operating leverage in 2013) and the share count shrinks via continued buybacks. The stock is at a premium to the group on P/B, but a discount on a P/E basis (10x 2014E vs. the group at 11.3x). We believe the stock should trade more in line with the group. FY13E EPS at $3.11; FY14E EPS at $3.3."

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 $33.13 yesterday.


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