U.S. Bancorp (USB) Price Target Lowered at Oppenheimer. Here is Why

With an annual dividend yield of 3.37%, U.S. Bancorp (NYSE:USB) is included among the 14 Best Blue Chip Dividend Stocks to Buy According to Hedge Funds.

As the fifth-largest commercial bank in the United States, U.S. Bancorp (NYSE:USB) works across a diversified mix of businesses, including commercial and institutional banking, business banking, payments, wealth management, and consumer banking.

On June 30, Oppenheimer analyst Chris Kotowski slightly cut the firm’s price estimate on U.S. Bancorp (NYSE:USB) from $74 to $73, but maintained an ‘Outperform’ rating on the shares. The trimmed target still represents an upside potential of over 18% from the current share price.

The move comes after Oppenheimer revised its ratings and estimates in the financial institutions and investment banking sector as part of a preview ahead of the Q2 earnings season. The analyst firm raised its estimates to reflect a stronger outlook for trading, but recommended limiting exposure in the large-cap banking group to the “most boring and stable commercial banks one can find”, namely U.S. Bancorp and PNC.

Oppenheimer also recommends redeploying capital from other large-cap banks into alternative asset managers.

In other news, U.S. Bancorp (NYSE:USB) recently revealed its intentions to raise its quarterly dividend by 3.8% to $0.54 per share, subject to approval by its Board of Directors, effective in the third quarter of 2026. The bank is largely dependent on interest income instead of investment banking, so its profitability and revenue tend to be more predictable and consistent. This helps USB to maintain its high dividend yield of 3.37% and places it among the 12 Best NYSE Stocks to Buy for Dividends.

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