Update shared on26 Sep 2025
Fair value Increased 0.97%Analysts raised their price target for U.S. Bancorp, citing industry-leading ROTCE, improving profitability, capital return potential, and easing capital requirements, while acknowledging ongoing peer underperformance and valuation concerns; the consensus fair value moved up slightly to $54.13.
Analyst Commentary
- Bullish analysts highlight undervaluation versus peers, industry-leading ROTCE, and potential for accelerating loan growth, improved capital returns (buybacks), and operating leverage as key reasons for upward price adjustments.
- Recent improvements in profitability metrics and management’s progress toward medium-term targets are expected to positively shift sentiment and support price target increases.
- Ongoing challenges cited by bearish analysts include historical underperformance versus peers, delayed merger benefits, past subpar pre-provision net revenue growth, and residual investor frustrations with earnings volatility.
- Some bearish and neutral analysts note industry-wide concerns about stretched valuations after recent rallies, with expectations for bank stocks to remain rangebound due to moderate near-term fundamentals despite a healthy operating environment.
- Lower capital requirements following successful stress tests, robust trading/investment banking activity, and peaked card losses are seen as improving the risk/reward outlook and driving constructive price target revisions.
What's in the News
- U.S. Bancorp will lower its prime lending rate to 7.25% from 7.5%, effective September 18 (U.S. Bancorp, 2025-09-17).
- U.S. banking lobbyists, including groups representing U.S. Bancorp, flagged a regulatory loophole that could let crypto exchanges pay interest to stablecoin holders, while banks would remain barred under the Genius Act (Financial Times, 2025-08-25).
- Fintech and crypto executives are urging the Trump administration to block U.S. banks from imposing customer data access fees, warning such fees could hinder innovation and impact small businesses (Bloomberg, 2025-08-15).
- A forthcoming White House executive order would fine banks, including U.S. Bancorp, for closing accounts based on customers’ political views, with regulators directed to enforce anti-discrimination laws (Wall Street Journal, 2025-08-05).
- Increasing U.S. tariffs and trade tensions have led many European and Asian clients to diversify away from Wall Street banks like U.S. Bancorp, with European lenders seeing increased business in euro bond transactions (Bloomberg, 2025-08-03).
Valuation Changes
Summary of Valuation Changes for U.S. Bancorp
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $53.60 to $54.13.
- The Future P/E for U.S. Bancorp remained effectively unchanged, moving only marginally from 13.92x to 14.00x.
- The Discount Rate for U.S. Bancorp remained effectively unchanged, moving only marginally from 7.73% to 7.78%.
Disclaimer
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