Street View: U.S. Bancorp plays the long game on fees

U.S. Bancorp USB.N reported nearly a 23% rise in Q4 profit on Tuesday, driven by higher interest income and growth in fee-based revenue

Median PT of 25 brokerages covering the stock is $62 - data compiled by LSEG

MOMENTUM BACK ON TAP

Morningstar (fair value: $56) says USB's focus on complex products including private credit, digital assets and derivatives should lift asset-based management fees and support mid-single-digit revenue growth over time

Piper Sandler ("overweight," PT: $62) believes USB’s fee income profile remains solid, with payments businesses returning to healthier levels, supporting an improving growth outlook on top of last year’s stronger momentum

D.A. Davidson ("buy," PT: $65) says USB could regain its premium valuation if it sustains positive revenue momentum

KBW ("market perform," PT: $59) says the next key catalyst is higher capital returns, which along with continued positive operating leverage can help narrow the valuation gap with peers