UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on U.S. Bancorp

In a report published Friday, Citigroup reiterated its Neutral rating on U.S. Bancorp USB, and raised its price target from $35.00 to $37.00. Citigroup noted, “We raise our 3Q estimate from $0.73 to $0.75 with 1c of the boost coming from stronger core trends including better expectations for mortgage banking, and 1c driven by the net impact of two one-time items expected during the quarter ($67 mil gain on sale from the $725 mil Card portfolio sold to KEY, offset by a $36 mil loss given the 3Q goodwill write-down posted from Nuveen Investments given USB's 9.5% stake). We raise our 2013 estimate 10c to $3.15 from $3.05 vs consensus of $3.04 and trim our 2014 EPS estimate by 5c from $3.25 to $3.20 vs consensus of $3.34 on our refreshed mortgage banking forecast. We raise our target price to $37 due to a lower beta of 1.1 vs 1.2 prior.” U.S. Bancorp closed on Thursday at $34.16.