04. U.S. Bancorp (NYSE:USB)
Price Reaction after the Price Target Cut: -0.25 (-0.59%)
On March 19, Oppenheimer analyst Chris Kotowski revised the price target for U.S. Bancorp (NYSE:USB), a significant player in the financial services industry. Despite maintaining an “Outperform” rating for the company, Kotowski adjusted the price target downwards from $61.00 to $55.00. Following this announcement, the market response showed a slight decrease of 0.59%, with the stock price settling at $42.22 on the closing bell of the same day. While the revised target reflects a more conservative outlook, Kotowski maintains confidence in U.S. Bancorp (NYSE:USB) ability to deliver solid results and generate value for shareholders. U.S. Bancorp (NYSE:USB) position within the financial services industry, coupled with its robust fundamentals and strategic initiatives, are key factors supporting Kotowski’s continued endorsement of the company. Despite the adjustment in the price target, Kotowski believes that U.S. Bancorp (NYSE:USB) remains well-positioned to navigate challenges and capitalize on growth opportunities in the dynamic financial landscape. The “Outperform” rating reaffirms Kotowski’s belief that U.S. Bancorp (NYSE:USB) stock has the potential to outperform its peers and the broader market. This rating underscores Kotowski’s conviction in U.S. Bancorp (NYSE:USB) strong business model, prudent risk management practices, and commitment to delivering shareholder value over the long term.
Artisan Value Fund stated the following regarding U.S. Bancorp (NYSE:USB) in its fourth quarter 2023 investor letter:
“Banks were well represented among our top Q4 performers as the Treasury market rally drove big gains in the bank stocks. U.S. Bancorp (NYSE:USB), PNC Financial Services (PNC) and Bank of America—the three banks we hold in the portfolio—were each among our top five contributors to return. When bank stocks sold off in Q1 due to fears of contagion following Silicon Valley Bank’s failure, we took advantage of the market dislocation by purchasing top-10 US banks USB and PNC at what were, in our view, cheap prices. USB and PNC are banks we have known for years. They are well managed and well capitalized. As large banks, they were less impacted by the turmoil that affected smaller institutions as depositors sought the safest places to store their money. The recent rebound is an example of how our approach of investing in out-of-favor businesses can lead to alpha. USB and PNC are not immune from industry-wide headwinds from higher deposit costs, pressured net interest margins and fleeing deposits. However, we did not see these banks having a similar level of risk, with respect to uninsured deposits and unrealized losses, which contributed in varying degrees to the collapses of other banks in March 2023. As investors, we cannot avoid risk. However, we are willing to take risk if we are being compensated appropriately.”
