US Bancorp Posts Q1 Earnings Beat, New CEO Exhibits 'Sense Of Urgency'

US Bancorp (NYSE:USB) reported upbeat first-quarter earnings on Wednesday.

Here are some key analyst takeaways.

• Goldman Sachs analyst Richard Ramsden maintained a Neutral rating, while reducing the price target from $44 to $42.
• DA Davidson analyst Peter Winter reiterated a Buy rating, while cutting the price target from $54 to $49.
• Raymond James analyst David Long reaffirmed an Outperform rating, while reducing the price target from $57 to $51.
• Truist Securities analyst John McDonald maintained a Hold rating and price target of $51.

Check out other analyst stock ratings.

Goldman Sachs: US Bancorp reported first-quarter earnings of $1.03 per share, beating consensus of $1.01 per share. Management guided to second-quarter net interest income of $4.1 billion to $4.2 billion, representing sequential growth, Ramsden said in a note.

The bank expects NII growth to continue through the year, "benefiting from fixed asset repricing, repositioning to higher yield loan categories as well as continued deposit repricing," the analyst wrote. Management reaffirmed their 2025 guidance to reflect total revenue growth of 3%-5%, he further stated.

DA Davidson: US Bancorp delivered a "clean quarter," with an earnings beat that was driven by fee income coming in sequentially flat at $2.836 billion, Winter said. He added that credit quality was strong, leading to provision expenses declining by $23 million to $537 million.

Management's total revenue growth guidance of 3%-5% reflects modest loan and deposit growth, the analyst stated. Gunjan Kedia, who took over as CEO on April 15, is "determined to have USB regain its premium valuation with a real sense of urgency.”

Raymond James: US Bancorp reported broadly in-line net interest margin, while reiterating its medium-term NIM target of 3.00% by 2027, Long said. The company also mapped out the steps to reach this target, he added.

"Incorporating a +3.0% NIM and +$700 billion balance sheet into 2027 results in at least 10% annual NII growth," the analyst wrote. This was the second consecutive quarter in which the bank achieved positive operating leverage, he further stated.

Truist Securities: US Bancorp’s earnings call focused on the achievement of medium-term targets under Kedia, McDonald said. There was no change in the bank's overall strategy of prudently managing expenses, growing organically, and transforming its payments businesses.

Management aims to strike a balance between growth and profitability in payments, "with the expectation that it will grow volumes in-line with the U.S. industry, while leaning into areas where it makes sense from a profitability/margin perspective," McDonald wrote.

Price Action: At the time of publication on Wednesday, shares of US Bancorp had risen by 2.14% to $38.61.

Read More:

• U.S. Bancorp Shares Drop While Leadership Transition Announced

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