U.S. Bancorp risk/reward ‘very attractive’ after selloff, says Citi

Citi attributes the post-earnings underperformance of U.S. Bancorp (USB) shares to skepticism on its ability to hit management’s 2025 guide for 200 basis points on operating leverage. However, Citi sees a clear path to the operating leverage target and views U.S. Bancorp as one of the biggest beneficiaries of fixed-rate asset repricing given its large underwater securities and mortgage books. The stock’s risk/reward is “very attractive” at current levels, the analyst tells investors in a research note. The firm reiterates a Buy rating on the shares with a $65 price target