Morgan Stanley Raises Price Target on U.S. Bancorp to $65

💡 Morgan Stanley upgrades U.S. Bancorp to overweight with a new price target of $65.

The Federal Reserve delivered a hawkish surprise on Wednesday, signaling that interest rate cuts remain further away than markets had hoped. Fed Chair Jerome Powell told reporters that the central bank needs "greater confidence" that inflation is sustainably declining before it will consider easing policy.

The 10-year Treasury yield surged to 4.8% in the aftermath, its highest level since October 2023. $TLT fell sharply as bond traders repriced the timing of the first cut from March to June.

Morgan Stanley Raises Price Target on U.S. Bancorp

The investment bank raised its price target on $USB to $65 from $58, citing improving fundamentals and a strong balance sheet. Morgan Stanley analysts believe that U.S. Bancorp's loan growth will outpace the industry average, driven by its commercial banking business.

U.S. Bancorp's Q1 Earnings

U.S. Bancorp is scheduled to report its Q1 earnings on April 18. Analysts expect the bank to deliver strong earnings growth, driven by its efforts to reduce expenses and improve its net interest income. $USB has a history of beating earnings estimates, which could further boost its stock price.

What It Means for Investors