Goldman Sachs has revised its price target for U.S. Bancorp (USB, Financial), reducing it from $44 to $42 while maintaining a Neutral rating on the stock. This adjustment comes after U.S. Bancorp reported first-quarter earnings that surpassed expectations, displaying pre-provision net revenue slightly above the consensus forecast.
The bank’s management received a positive nod for reaffirming its guidance, yet Goldman Sachs expressed caution about the challenges ahead. The firm highlighted concerns over U.S. Bancorp's ability to achieve a net interest margin exceeding 3% by 2027, especially considering ongoing macroeconomic uncertainties and fluctuating interest rates.
Despite the encouraging earnings beat, the financial environment's volatility continues to cast doubt on the bank's long-term financial targets, leading to a more conservative price projection for USB shares. Investors are advised to consider these factors when evaluating the stock's potential performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for U.S. Bancorp (USB, Financial) is $52.87 with a high estimate of $63.00 and a low estimate of $44.00. The average target implies an upside of 39.79% from the current price of $37.82. More detailed estimate data can be found on the U.S. Bancorp (USB) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, U.S. Bancorp's (USB, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for U.S. Bancorp (USB, Financial) in one year is $47.39, suggesting a upside of 25.3% from the current price of $37.82. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the U.S. Bancorp (USB) Summary page.
