TD Cowen Cites Expanding Balance Sheets, Shifting Fed Leadership as Key Catalysts for US Bancorp (USB)

US Bancorp (NYSE:USB) is one of the best large cap value stocks to buy in 2026. On January 7, TD Cowen raised the firm’s price target on US Bancorp to $65 from $60 and maintained a Buy rating on the shares. In a Q4 2025 earnings preview, TD Cowen adjusted its price targets for the banking sector. The firm pointed to expanding balance sheets and favorable asset repricing as key drivers. Furthermore, the firm expects bank stocks to benefit from a shift in Fed leadership in 2026.

HSBC also raised its price target for US Bancorp to $62 from $58 while maintaining a Buy rating on the shares. The firm noted that a recent pullback in bank stocks has created selective opportunities for investors to increase their exposure. As part of this update, HSBC increased 2025–2026 adjusted EPS estimates for the sector by ~1% to 7%. These higher projections are driven by expectations for increased net interest income, stronger investment banking fees, and more robust share repurchase activity.

TD Cowen Cites Expanding Balance Sheets, Shifting Fed Leadership as Key Catalysts for US Bancorp (USB)

However, Wolfe Research downgraded US Bancorp (NYSE:USB) on the same day to Peer Perform from Outperform.

US Bancorp (NYSE:USB) is a financial services holding company that provides a range of services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the US.

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