Morgan Stanley downgraded U.S. Bancorp (USB) to Equal Weight from Overweight with a price target of $56, up from $52. The firm’s new price target implies 11% upside, which it notes is below the median for the big banks group and well below 26% median upside seen across Overweight-rated stocks in the group. The firm sees U.S. Bancorp benefiting into rate cuts, but with little visibility into deposit behavior this cycle acknowledges that deposit costs could remain elevated at times and create intermittent pressure on net interest income, the analyst noted.
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