Goldman Sachs Upgrades U.S. Bancorp (USB) to Neutral

Goldman Sachs analyst Richard Ramsden upgraded U.S. Bancorp (NYSE: USB) from Sell to Neutral with a price target of $38.00 (from $48.00).

The analyst comments "We estimate the market has priced in 82% of a full recessionary scenario into USB’s valuation, relative to roughly 70% for peers, even while we believe USB performs better in a downside scenario, given: 1) lower interest rate sensitivity; 2) less reliance on investment banking and market-based revenues; and 3) greater exposure to fee-based payments revenues. Even assuming recessionary credit normalization, we estimate USB can still generate a 10% ROTCE, the only large bank with significant sensitivity to credit to earn above the presumed cost of capital, relative to 7% for peers."

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 $31.61 yesterday.

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