ISI Group Reiterates Hold Rating, $37 PT on US Bancorp

In a report published Wednesday, ISI Group reiterated its Hold rating and $37.00 price target on US Bancorp

. ISI Group noted, “USB's reported EPS included 3 1-time items that netted out to no impact: a $60mn gain on KEY's repurchase of a credit card portfolio, USB's 9.5% stake of Nuveen's $385mn goodwill write-down, and an incremental charge-off (and provision) to account for the new OCC guidance on consumers in bankruptcy. In stark contrast to other regional banks that have already reported, USB was able to keep its NIM stable and increase its net interest income from 2Q12. That should help the stock remain solid today. However, we still worry that USB will experience NIM pressure over the next few quarters. Also, 3Q fee income was slightly below our estimates.” US Bancorp closed on Tuesday at $33.61.