UPDATE: Bank of America Downgrades US Bancorp to Neutral on Comparative Upside Outlook
Bank of America reduced its rating on US Bancorp (NYSE: USB) from Buy to Neutral and reduced its price objective from $37 to $35.
Bank of America noted, "We are downgrading USB to Neutral from Buy. We are also lowering our PO to $35 from $37 as we believe that USB's above average valuations will come under pressure based on a declining ROTE that we forecast. While we expect USB's fundamentals to remain best-in-class, we see better upside in money center names C (30% to our PO; here) and JPM (16%; here), and prefer PNC and WFC in the regional banks. Investors have gravitated toward the relative “safety” of the regional banks given the lower global macro/US policy risk associated with these names and better earnings visibility vs. the money centers."
US Bancorp closed at $34.68 on Tuesday.
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