Raymond James analyst Michael Rose resumes coverage on U.S. Bancorp (NYSE: USB) with a Strong Buy rating and a price target of $72.00.

The analyst comments "We are resuming coverage of U.S. Bancorp (USB) with a Strong Buy rating and $72 price target. After several years of underperformance versus peers and the large-cap BKX Index, we believe USB has entered a period of more durable earnings growth as years of investments in technology, payments and product capabilities are translating into accelerating revenue growth, sustained positive operating leverage and consistently high returns. Following its September 2024 Investor Day (link) and CEO transition to Gunjan Kedia in April 2025 (link), USB has achieved its operational and financial targets more quickly than originally anticipated. As a result, the investor narrative has shifted from a "show me" story — following repeated EPS misses and negative operating leverage during 2023-24 — to one centered on consistent execution. While investor confidence has improved, we believe the market continues to underestimate the durability of USB's earnings power as prior investments are creating new organic growth opportunities across payments, capital markets, small business and consumer banking that should support sustained high-teens ROTCE, accelerating EPS growth and increasing capital returns."

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Shares of U.S. Bancorp closed at $62.89 yesterday.