Financial services firm U.S. Bancorp (USB) has signed an agreement to acquire San Francisco-based fintech company TravelBank for an undisclosed amount.
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Minnesota-based U.S. Bancorp offers lending and depository, cash management, foreign exchange and trust and investment management services.
About TravelBank
TravelBank provides an expense and travel management solution that helps businesses in streamlining approvals and reporting, automating processes, controlling and tracking expenses, and complying with company policies.
Transaction Details
The acquisition, which is expected to close in the last quarter of 2021, will help U.S. Bank speed up digital payments integration into the commercial segment. (See Insiders’ Hot Stocks on TipRanks)
Management Comments
The Vice-Chair of Payment Services at U.S. Bank, Shailesh Kotwal, said, “This acquisition will allow us to significantly expand our client base and deliver even more value to our customers.”
The CEO of TravelBank, Duke Chung, stated, “Our combined offering with U.S. Bank will be the most comprehensive expense, travel and payment management solution in the industry.”
Wall Street’s Take
Recently, Robert W. Baird analyst David George maintained a Hold rating on the stock with a price target of $55 (9.1% downside potential).
The analyst expects the company to post earnings per share (EPS) of $1.30 in the fourth quarter.
Analyst Recommendation
Overall, the stock has a Moderate Buy consensus rating based on 6 Buys, 4 Holds and 1 Sell. The average U.S. Bancorp price target of $65.90 implies nearly 9% upside potential. Shares have gained 37.5% over the past year.
Risk Analysis
According to TipRanks’ Risk Factors tool, U.S. Bancorp is at risk mainly from one factor: Finance & Corporate, which accounts for 45% of the total 33 risks identified for the stock.
Under the Finance & Corporate category, there are 15 risks, details of which can be found on the TipRanks website.
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