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Investing.com - Raymond (NSE:RYMD) James has upgraded U.S. Bancorp (NYSE:USB) from Outperform to Strong Buy and raised its price target to $57.00 from $51.00. The bank, currently valued at $74.7 billion, has shown strong momentum with a 28% return over the past year.
The upgrade reflects Raymond James’ increasing confidence that U.S. Bancorp will achieve its targeted medium-term profitability metrics, according to the firm’s analysis.
Raymond James expects U.S. Bancorp to deliver more than 200 basis points of positive operating leverage this year, followed by over 150 basis points of positive operating leverage in 2026.
The firm believes these profitability improvements will shift investor sentiment positively on what it describes as a "show me story" for the bank.
Raymond James also noted that the current market skepticism about U.S. Bancorp’s ability to reach its medium-term profitability targets has created a "unique buying opportunity" with shares trading at a discounted valuation.
In other recent news, U.S. Bancorp announced a regular quarterly dividend of $0.50 per common share, payable on July 15, 2025. The company also declared dividends on several series of preferred stock, all set to be paid on the same date. Evercore ISI raised its price target for U.S. Bancorp to $49, maintaining an In Line rating, following discussions about the bank’s stable revenue trends and positive operating leverage expectations. DA Davidson also adjusted its price target to $49, down from $54, but retained a Buy rating, emphasizing the new CEO Gunjan Kedia’s commitment to achieving medium-term profitability goals. Similarly, Keefe, Bruyette & Woods cut their price target to $49 while maintaining a Market Perform rating, citing the need for more visibility on growth in payments revenue.
In leadership news, U.S. Bancorp promoted Adam Graves to senior executive vice president and head of enterprise strategy and administration. Graves, who joined the company in 2023, will now oversee corporate real estate, marketing, analytics, and other strategic areas. These developments reflect U.S. Bancorp’s ongoing strategic adjustments and leadership changes as it navigates current financial landscapes. Despite challenges, analysts generally maintain a positive outlook on the company’s strategic direction and financial stability.
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