Analysts See Limited Upside for U.S. Bancorp (USB) Amid Neutral Outlook

U.S. Bancorp (NYSE:USB) is among the 15 Undervalued Momentum Stocks That Are Taking Off.

On February 9, JPMorgan reiterated its Underweight rating on U.S. Bancorp (NYSE:USB) but raised its price target from $55.5 to $62. This revision comes amid JPM’s estimate revisions across the large-cap banks, with the firm noting that markets continue to price in two rate cuts while long-term yields “remain sticky with inflation concerns.”

That said, JPM also acknowledged that bank stocks have demonstrated resilience, supported by sector rotation, stable economic conditions, and steady underlying fundamentals. They also see a supportive regulatory environment and ongoing bank consolidation activity as tailwinds to the sector.

Broader sentiment towards the stock remains cautious, as two other analysts have also reaffirmed their neutral stances during the first week of February despite raising their price targets. Around February 4, UBS raised its price target to $60 from $57 with a Neutral rating, and a day later, Evercore ISI analyst John Pancari also increased his price target on USB to $65 from $60 while keeping an In Line rating.

Overall, 50% of analysts who cover the stock rate it Buy or equivalent, and the consensus 1-year median price target of $62 implies a 6%-7% upside. With year-to-date returns of around 10%, the stock currently trades at $58.76, near the top of its 52-week range.

U.S. Bancorp (NYSE:USB), a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the United States. It operates in Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support segments.

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Disclosure: None. This article is originally published at Insider Monkey.