Barclays analyst Jason Goldberg upgraded U.S. Bancorp to Overweight from Equal Weight with a price target of $68, up from $62. The analyst believes 2023 should see net interest margins peak for the large-cap banks, deposit betas rise, loan growth slow, and loan losses increase. In addition, banks trade well above tangible book value despite recession concerns, Goldberg tells investors in a research note. As such, the analyst is "becoming less constructive" on banks with "outsized" asset sensitivity and areas he believes loan losses will adjust the fastest, namely, lower-end consumer and commercial real estate. He made several rating changes as part of his 2023 outlook.
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