UPDATE: Morgan Stanley Raises Price Target to $32

According to Morgan Stanley, U.S. Bancorp (NYSE: USB) Overweight rating is maintained.

Morgan Stanley said that raising 2012/13 estimates +9c (4%)/+10c (4%) to $2.64/$2.79 on higher C+I loan growth and share repurchases and less margin compression. “We look for +12% C+I growth, +44% dividend growth and +156% buyback growth with a total 60% payout ratio and 6% total yield in 2012. PT up $1 to $32.”

U.S. Bancorp closed yesterday at $25.80.