U.S. Bancorp price target lowered to $49 from $50 at BofA

BofA analyst Ebrahim Poonawala lowered the firm’s price target on U.S. Bancorp (USB) to $49 from $50 and keeps a Buy rating on the shares. Several investors with whom the firm spoke view shares as a funding short compared to other regional bank longs, citing the lack of near-term catalysts to drive potential upside surprises that would reverse negative investor sentiment, the analyst tells investors. However, a gradually improving capital position, margin expansion, disciplined expense management and proof points on fee revenue growth should drive double-digit EPS growth and an improving ROA over the next two years, contends the analyst following meetings with soon-to-be CEO Gunjan Kedia.