TD Cowen Maintains a Constructive View on U.S. Bancorp (USB)

U.S. Bancorp (NYSE:USB) is included among Dividend Contenders List: Top 20 Stocks.

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On January 21, TD Cowen raised its price target on U.S. Bancorp (NYSE:USB) to $66 from $65 and kept a Buy rating.

The firm said 4Q25 core EPS of $1.26 came in ahead of expectations. Net interest income and fees both surprised to the upside, while expense control stayed tight. Pre-provision operating leverage was solid during the quarter. With a more supportive setup heading into 2026, the stock outperformed after the earnings release.

In a separate development, Reuters reported that U.S. Bancorp said on January 20 it plans to acquire Wall Street brokerage BTIG for up to $1 billion in cash and stock. The deal brings in a familiar partner and strengthens the bank’s capital markets presence.

The acquisition gives U.S. Bancorp access to BTIG’s investment banking, institutional sales and trading, research, and prime brokerage capabilities as it continues to expand beyond traditional banking. Stephen Philipson, head of wealth, corporate, commercial and institutional banking at U.S. Bancorp, said:

“BTIG’s addition to U.S. Bancorp is a strategic move to fill key product gaps for our corporate and institutional clients, enabling us to offer a more comprehensive suite of capital markets services.”

The relationship between the two firms goes back years. BTIG has served as U.S. Bancorp’s equity capital markets referral partner since 2014.

U.S. Bancorp will pay $725 million in cash and stock upfront, with up to an additional $275 million in cash over three years tied to performance targets. The deal is expected to add new capabilities in equity capital markets, M&A advisory, and equity trading. It should also contribute roughly $750 million in annual revenue, largely fee-based.

U.S. Bancorp (NYSE:USB) is a financial services holding company with operations across Wealth, Corporate, Commercial and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support.

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