U.S. Bancorp (USB) Rallies 3.99% on Analyst Optimism, Strong Earnings Report

The share price of U.S. Bancorp (USB) reached its highest level so far this month, surging 4.02% intraday on Jan. 6. The stock has now gained 3.99% over the past two trading days, extending a recent upward trend driven by analyst optimism and strong earnings performance.

Analysts have been increasingly bullish on USB, with Barclays raising its price target to $65 from $56 and maintaining an “Overweight” rating. Truist Securities and Keefe, Bruyette & Woods also increased their targets, reflecting confidence in the bank’s regional dominance and diversified service offerings. The average price target across 23 analysts stands at $57.62, implying a 3.8% upside from current levels. The stock’s 3.9% dividend yield and a $10 billion share repurchase program further bolster investor appeal amid a low-yield environment.

U.S. Bancorp reported better-than-expected earnings in October 2025, with a $1.22 per share profit and $7.34 billion in revenue, exceeding estimates. The stock’s valuation appears attractive relative to peers, trading at a 12.3x P/E ratio. However, analysts caution that rising regulatory and cybersecurity costs could pressure margins. Projected revenue growth of 8.5% annually over the next three years supports long-term confidence, though margin compression remains a near-term risk. The stock’s recent momentum underscores its position as a favored regional bank in a competitive landscape.