BUZZ-Street View: U.S. Bancorp plays the long game on fees

Reuters01-21
BUZZ-Street View: <a href="https://laohu8.com/S/USBOV">U.S. Bancorp</a> plays the long game on fees

** U.S. Bancorp USB.N reported nearly a 23% rise in Q4 profit on Tuesday, driven by higher interest income and growth in fee-based revenue

** Median PT of 25 brokerages covering the stock is $62 - data compiled by LSEG

MOMENTUM BACK ON TAP

** Morningstar (fair value: $56) says USB's focus on complex products including private credit, digital assets and derivatives should lift asset-based management fees and support mid-single-digit revenue growth over time

** Piper Sandler ("overweight," PT: $62) believes USB’s fee income profile remains solid, with payments businesses returning to healthier levels, supporting an improving growth outlook on top of last year’s stronger momentum

** D.A. Davidson ("buy," PT: $65) says USB could regain its premium valuation if it sustains positive revenue momentum

** KBW ("market perform," PT: $59) says the next key catalyst is higher capital returns, which along with continued positive operating leverage can help narrow the valuation gap with peers

(Reporting by Kanishka Ajmera in Bengaluru)

((Kanishka.Ajmera@thomsonreuters.com))

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