U.S. Bancorp Plunges 4.82% on J.P. Morgan Downgrade

On April 4, 2025, U.S. Bancorp's stock experienced a significant drop of 4.82% in pre-market trading, reflecting a notable shift in investor sentiment.

J.P. Morgan has downgraded U.S. Bancorp to Underweight from Neutral, citing concerns over the bank's valuation and the broader economic environment. The firm has also reduced its price target for the stock to $43.50 from $51, indicating a more cautious outlook.

This downgrade comes amid a broader reassessment of the banking sector by J.P. Morgan, which has also lowered its estimates for the industry as a whole. The firm's analyst, Juneja, has shifted his rating for U.S. Bancorp from neutral to underweight, reflecting a more pessimistic view on the bank's prospects.

Despite the downgrade, Wolfe Research has upgraded U.S. Bancorp to Outperform from Peer Perform, suggesting that the stock may still offer value to investors. However, the overall sentiment remains mixed, with some analysts expressing concerns about the bank's performance in the current economic climate.