US Bancorp (USB) Gets a Buy from Oppenheimer

Evercore ISI Group maintained an 'Outperform' rating on U.S. Bancorp (USB) but lowered its price target from $72.00 to $65.00, citing market conditions. USB's GF Value™ is $51.30, suggesting a 9.3% overvaluation. The company's GF Score™ is 84, indicating strong performance but with lower financial strength. Insider activity shows significant selling.

The U.S. Federal Reserve plans to raise asset thresholds for stricter bank oversight, according to sources. Current thresholds are $100B, $250B, and $700B. The Fed may reindex these, potentially benefiting banks like U.S. Bancorp, Capital One, and PNC. Changes could spur consolidation and reduce regulatory burdens.

The US Federal Reserve plans to raise asset thresholds for stricter oversight of big banks, according to sources. Current thresholds are $100B, $250B, and $700B. The Fed may reindex these, potentially benefiting banks like U.S. Bancorp, Capital One, and PNC Financial. Changes could spur consolidation among mid-size lenders and increase competition, but critics argue it may reduce consumer benefits and increase systemic risks.

Major U.S. banks, including JPMorgan, Bank of America, and Citigroup, raised their prime lending rates to 7% following the Federal Reserve's quarter-point increase in the federal funds rate to 3.75%-4%. The Fed cited persistent inflation. Bank stocks fell, reflecting mixed investor sentiment. The Fed projects further rate hikes, with implications for borrowers and the broader economy.

Truist Financial (TFC), U.S. Bancorp (USB), and Republic Bancorp (RBCAA) fell 3.9%, 3.8%, and 3% respectively after the Fed raised rates to 3.75%-4% and signaled more hikes, citing elevated inflation. Bank stocks declined on concerns about slower lending and economic activity. TFC is down 2.6% YTD and 13.2% from its 52-week high.

U.S. Bancorp (USB) reported progress in its business transformation, with fee growth and margin gains. The bank expects Q3 net interest income growth of 4-6% and fee revenue growth of 12-14%. Management highlighted strong revenue momentum, cost control, and a focus on payments and capital markets. USB shares trade at a P/E of 12.26, with revenue growth of nearly 7% over the last year.