Raymond James Upgrades U.S. Bancorp (USB) Stock to Strong Buy

U.S. Bancorp (NYSE:USB) is one of the Best Large Cap Value Stocks to Invest In. Raymond James analyst David Long upgraded the company’s stock to “Strong Buy” from “Outperform” with a price objective of $57, up from the prior target of $51, as reported by The Fly. The upgrade demonstrates the firm’s increased confidence that U.S. Bancorp (NYSE:USB) will achieve targeted medium-term profitability metrics. As per the analyst, the bank’s improvement in profitability is expected to shift investor sentiment to the positive side.

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Also, the firm highlighted that the current market skepticism about U.S. Bancorp (NYSE:USB)’s ability to reach the medium-term profitability targets resulted in a unique buying opportunity, with the company’s shares trading at a discounted valuation. All U.S. Bancorp (NYSE:USB)’s regulatory ratios demonstrate healthy capital levels as well as surpass the well-capitalized requirements. Notably, the company’s CET1 capital to risk-weighted assets ratio using the Basel III standardized approach stood at 10.8% as of March 31, 2025.

In Q1 2025, U.S. Bancorp (NYSE:USB)’s total net revenue of ~$7.0 billion was aided by slight margin expansion and YoY growth in fee revenue of 5%. Notably, the asset quality and capital levels were robust.

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Disclosure: None. This article is originally published at Insider Monkey.