Raymond James hikes Wells Fargo price target; reiterates underperform on US Bancorp

Raymond James analyst David Long on Monday raised Wells Fargo & Co.’s
WFC,
+1.52%
target price to $51 a share from $48 a share and reiterated a strong buy rating on the megabank. “We remain bullish on WFC shares, as we see several positive catalysts on the horizon, including a lower-than-peer deposit beta, further expense rationalization, and the eventual removal of consent orders (improved governance),” Long said. Wells Fargo stock is up 0.4% in premarket trades. Meanwhile, analyst Long reiterated an underperform rating on US Bancorp
USB,
+1.71%
and said the bank’s outlook for net interest income and net interest margin is “overly optimistic” given higher deposit costs in the industry and mixes shifting away from noninterest bearing sources. US Bancorp stock is up 0.4% in premarket trades on Monday.