US Bancorp hits over 2-year high after Citi upgrades to 'buy'
** Shares of lender U.S. Bancorp USB.N rise as much as 2.7%; last up 1.8% at $53.47
** Stock trading at its highest since March 2022
** Citi Research upgrades USB to "buy" from "neutral"; raises PT to $65 from $49, a 23.8% upside to stock's last close
** Brokerage says USB has recently lagged its peers as investors expressed concerns on return on tangible capital equity (ROTCE) deterioration due to investment spend and weak payments trends
** ROTCE is a key metric that measures how well a bank uses shareholder money to produce profit
** Citi believes UBS has turned the corner on investment spend and should return to positive operation leverage as expense growth moderates
** Brokerage also believes net interest margin (NIM) — a key measure of banking profitability — will improve over time as deposit costs are lowered
** Eleven of 25 brokerages rate the stock "buy" or higher and 14 "hold"; median PT $52.21 — LSEG
** As of last close, USB shares up 21.3% YTD
Reporting by Arasu Kannagi Basil in Bengaluru
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
