UPDATE: Stifel Nicolaus Upgrades U.S. Bancorp to Buy on ROA, Earning Levers

Stifel Nicolaus upgraded U.S. Bancorp

from Hold to Buy and announced a $39.00 price target. Stifel Nicolaus commented, "We arrive at our $39 target price by applying a 12x multiple to our 2014 estimate of $3.25. We believe a premium P/E multiple is warranted, given the company's superior ROA and earnings levers in the challenging operating environment. Risks to this target price include a weaker-than-expected economic recovery, which could lower earnings estimates because of weak loan growth and/or higher credit losses. In addition, a dilutive acquisition by the company could be viewed negatively by investors." U.S. Bancorp closed at $33.65 on Friday.