UPDATE: Goldman Sachs Upgrades US Bancorp to CL-Buy, Raises PT on Multiple Sources of Opportunity

In a report published Wednesday, Goldman Sachs analyst Richard Ramsden upgraded the rating on

from Neutral to Conviction List-Buy, and raised the price target from $40.00 to $44.00. In the report, Goldman Sachs noted, “USB lost some of its premium multiple in 2013 as its revenue growth slowed and other bank stocks re-rated. We expect USB's revenue growth to reaccelerate in 2014, and when it does we expect it can recapture its premium multiple. Additionally, we expect USB to be one of the best-performing banks on the 2014 CCAR, which could prove a catalyst when results are released in March. While USB is not inexpensive at 11x 2015E EPS (vs. larger peers at 10x), we still view its relative valuation as attractive given USB's higher returns and more predictable EPS power (which should continue to enable best in class capital return). Our 12 month price target is $44 (from $40), which is 12.5x our 2015E EPS of $3.55 (from $3.45). In our view, a 1-2x point target P/E premium to peers is well warranted given higher-quality earnings mix.” US Bancorp closed on Tuesday at $39.21.