U.S. Bancorp price target lowered to $70 from $71 at Oppenheimer

Oppenheimer analyst Chris Kotowski lowered the firm’s price target on U.S. Bancorp to $70 from $71 and keeps an Outperform rating on the shares. The analyst believes the banks will prove "steadier than most think" in Q4 and 2023. He does not buy the concern that we are near the peak in net interest income. Higher interest rates are likely to be an ongoing benefit, and loan growth helps too, Kotowski tells investors in a research note. The analyst adds that his models include a near doubling of loan losses as credit trends normalize. The group’s "resilience will win out" and multiples will revert to a mid-70s relative price-to-earnings, contends Kotowski. His recommendations include Bank of America (BAC), Citi (C), Goldman Sachs (GS), Jefferies Financial Group (JEF), JPMorgan (JPM), Morgan Stanley (MS) and US Bancorp (USB).