UPDATE: Credit Suisse Downgrades U.S. Bancorp

In a report published Wednesday, Credit Suisse analyst Jill Shea downgraded U.S. Bancorp (NYSE: USB) to Neutral from Outperform, raising its price target to $44.00 from $40.00.

According to the report, USB continues to distinguish itself from peers with its diversified earning stream, conservative operating philosophy and leading returns. The revised price target of $44.00 implies 8 percent upside and not enough to justify the previous Outperform rating.

“While there are many attributes about the operating performance of US Bancorp that are enviable, we see more upside in other large cap stocks at lower valuations which are poised to generate higher earnings growth next year,” the report said. “Our top pick is Citigroup followed by JPMorgan Chase. We see less upside in USB shares over the near-term given expectations for modest revenue growth and less in the way of expense leverage given its already leading efficiency ratio relative to peers.”

USB closed Tuesday at $40.93.