U.S. Bancorp (USB) PT Raised to $49 at DA Davidson

DA Davidson analyst Peter Winter raised the price target on U.S. Bancorp (NYSE: USB) to $49.00 (from $44.00) while maintaining a Neutral rating.

The analyst comments "Net interest income hit an inflection, as it increased 0.9% Q/Q in 2Q24, plus the outlook is for slightly better fee income growth in 2H24, while tightly managing expenses as the heavy investment spending is behind the company, setting the stage for positive operating leverage in 2H24 and into 2025. Although USB has the flexibility to manage expenses if revenues come in weaker to generate POL, investors are more focused on revenue trends at USB vs. generating POL. Maintain NEUTRAL rating, but raising our PT to $49 (was $44) = target P/E multiple of 11.2X (was 10.7X) our '25 EPS forecast of $4.34 and no longer using a 5% discount."

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