UBS Nudges U.S. Bancorp (USB) Target Higher while Holding a Neutral View

U.S. Bancorp (NYSE:USB) is included among the 15 Best Wide Moat Dividend Stocks to Invest in.

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On February 4, UBS lifted its price recommendation on U.S. Bancorp (NYSE:USB) to $60 from $57. The firm maintained a Neutral rating on the stock. The move reflects modest confidence, not a major shift in stance. For investors who track large regional banks closely, this kind of incremental adjustment is familiar territory.

A few weeks earlier, on January 13, U.S. Bancorp announced plans to acquire BTIG for up to $1 billion in cash and stock. The purchase brings in a long-time partner and gives the bank a clearer path into capital markets, an area it has been steadily building out beyond traditional banking.

The deal is designed to tap into BTIG’s strengths across investment banking, institutional sales and trading, research, and prime brokerage. U.S. Bancorp has worked with BTIG since 2014, when the brokerage became its equity capital markets referral partner. This is not a cold start. It looks more like formalizing a relationship that has already been tested over time.

Under the agreement, U.S. Bancorp (NYSE:USB) will pay $725 million in cash and stock upfront. An additional $275 million in cash may be paid over the next three years, depending on performance targets. If those targets are met, the acquisition would add roughly $750 million in annual revenue, largely fee-based, which matters as banks look for income streams less tied to interest rates.

The transaction also expands the bank’s capabilities in equity capital markets, mergers and acquisitions advisory, and equity trading. BTIG’s leadership team will join U.S. Bancorp and continue running the business, which should help preserve client relationships and internal culture. BTIG, Goldman Sachs, and Sheumack GMA served as advisers on the deal. The acquisition is expected to close in the second quarter of 2026.

U.S. Bancorp (NYSE:USB) operates across Wealth, Corporate, Commercial and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support.

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