Market Overview

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

Related USB
#PreMarket Primer: Thursday, July 17: Russia Hit With New Sanctions
UPDATE: U.S. Bancorp Posts Higher Q2 Profit, Shares Rise In Pre-Market

Stifel Nicolaus upgraded U.S. Bancorp (NYSE: USB) 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.

Posted-In: Stifel NicolausAnalyst Color Upgrades Analyst Ratings

 

Most Popular

Related Articles (USB)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free