Baird analyst David George upgraded U.S. Bancorp to Outperform from Neutral with a $52 price target. The regional bank risk/reward trade-off "remains very attractive," the analyst tells investors in a research note. "The stocks are more inexpensive today than they were during the pandemic, and if you don’t buy banks here, we aren’t sure when you do," says the firm. It sees a "rare opportunity" to take a position in U.S. Bancorp, calling it "high-quality regional bank with little to no downside and ~50% upside over time." Baird says U.S. Bancorp and other super regionals will likely be net beneficiaries from a deposit funding perspective to the extent larger depositors want to mitigate their funding risk at smaller regionals.
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Published first on TheFly
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