UBS thinks the recent banking crisis has left U.S. Bancorp with limited upside. The firm now has U.S. Bancorp marked at neutral down from a buy rating. It also lowered its price target on the stock to $39 per share from $57 per share. That represents 9% upside from the stocks last closing price of $35.75 per share. UBS noted that “structural uncertainties” remain for the company which are more of a headwind as opposed to the macro issues stemming from the regional banking crisis. USB RF YTD mountain UBS downgraded U.S. Bankcorp on Monday, citing “structural uncertainties” afflicting the company after a broader banking liquidity crisis last month. “We entered 2023 naming USB as one of our Top Picks. But that was in the ‘before times.’ (Before the liquidity crisis.) While strategically sound, USB’s acquisition of UB (closed in December 2022) puts it in a precarious position in the ‘after times,”’ UBS analyst Erika Najarian wrote on Monday. Shares of U.S Bancorp have pulled back 18% year to date, stemming largely from a broader liquidity crisis spurred from the collapse of Silicon Valley Bank and Signature Bank last month . Meanwhile, UBS upgraded peer regional bank Regions Financial to a buy rating, and highlighted the company’s balance sheet management which will help it “weather the current interest rate storm better than peers.” — CNBC’s Michael Bloom contributed to this report.
