What Hedge Funds Thinks About These Companies Upgraded By Deutsche Bank

Moving on to U.S. Bancorp (NYSE:USB), Deutsche Bank upgraded the stock to “Buy” from “Hold”, while the price target remained at $47. It is believed that the shares of USB have been hit by concerns of slowing revenue and high exposure to capital markets. On the contrary, Deutsche Bank claims that USB does not have significant capital markets exposure, has one of the best risk management/credit profiles in the industry, and delivers the highest returns among its industry peers. Therefore, the concerns about global economic growth and a potential rate hike might have impacted the stock, which is down by over 8% since the beginning of the year, too strongly. The upgrade and the stock market’s recovery resulted in pushing the stock higher yesterday. From the pool of 737 hedge funds tracked by Insider Monkey, Warren Buffett’s Berkshire Hathaway is indisputably the largest equity holder in U.S. Bancorp (NYSE:USB), with 85.06 million shares.

Last but not least, Wells Fargo & Company (NYSE:WFC) was upgraded to “Buy” from “Hold”, while Deutsche Bank’s price target on it remained firm at $60. Deutsche Bank suggests that Wells Fargo is well-positioned to undertake more cost savings, while the resulting liquidity might allow the bank to benefit from higher rates. Furthermore, the bank is believed to be less exposed to capital markets than the other banks in the industry, and brokers. It’s also worth mentioning that Deutsche Bank expects Well Fargo to generate better-than-expected third quarter net interest income. Nevertheless, the stock is down by more than 3% year-to-date, being struck by the recent stock market mini-crashes. Meanwhile, the price target mentioned above suggests an upside potential of nearly 14% and this potential is narrowing down considering that the shares of WFC gained nearly 3% yesterday. Yet again, Warren Buffett’s Berkshire Hathaway is the top shareholder of Wells Fargo & Company (NYSE:WFC) within our database, owning 470.29 million shares as of June 30.

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