On Friday, Oppenheimer analysts increased their price target on shares of U.S. Bancorp (BVMF:USBC34) (NYSE:USB) to $63 from $62, while maintaining an Outperform rating on the stock.
The adjustment followed U.S. Bancorp's fourth-quarter earnings report, which revealed earnings per share (EPS) of $1.01, slightly below the expected $1.05. Notably, after accounting for certain one-time items such as lease impairments, the adjusted EPS would have been $1.07.
The bank's stock experienced a 5.6% decline on the day of the earnings announcement, a sharper drop than the broader S&P 500 index, which fell by 0.21%.
The analysts said "We're not quite sure what tripped the sell algorithms into action, and note that a number of the larger regionals were down in the 1-3% range. In any case, we viewed it as a relatively straightforward and ho-hum quarter that left our estimates and targets pretty much unchanged and would use the weakness to build positions."
Despite the unexpected share price movement, Oppenheimer's stance on U.S. Bancorp remains positive, as reflected in their decision to slightly raise the price target and sustain a favorable stock rating.
The firm's analysis suggests that the earnings results, when adjusted for non-recurring factors, were solid and indicative of a stable operating performance.
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