Keefe Bruyette analyst David Konrad upgraded U.S. Bancorp to Outperform from Market Perform with a price target of $58, up from $52. The shares are trading at a “deep discount to historical valuations” with the market underestimating the earnings power of Union Bank given higher rates since the deal was announced, Konrad tells investors in a research note. The analyst says U.S. Bancorp has historically widened its valuation to the group in recessionary periods. U.S. Bancorp is trading at 3% discount on 2024 estimates, compared to its historical 10% premium, and this gap should “collapse with improved visibility of earnings power and capital generation,” contends Konrad.
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