Citigroup Reiterates Neutral, $30 PT on US Bancorp

Citigroup maintains its Neutral rating and $30 price target on US Bancorp (NYSE: USB) as the company's positive operating leverage in the fourth quarter is likely to be best in its class.

Citigroup says, "US Bancorp reported 4Q EPS of $0.69 vs. our estimate of $0.62 and consensus of $0.63. The beat was driven by 1) $0.03 from higher core PTPP 2) $0.01 from a lower provision and 3) $0.03 from one-timers (see Figure 1). The tax rate was in line. We believe USB's premium valuation embeds a fairly high bar, but we believe these results exceeded those expectations and expect that the stock will outperform modestly today. While results were strong, its unlikely 4Q results will materially move consensus higher, limiting near term gains."

USB closed at $28.77 per share on Tuesday.