UBS says gains will be limited for this banking stock after recent crisis
UBS thinks the current banking disaster has left U.S. Bancorp with restricted upside. The agency now has U.S. Bancorp marked at impartial down from a purchase score. It additionally lowered its worth goal on the inventory to $39 per share from $57 per share. That represents 9% upside from the shares final closing worth of $35.75 per share. UBS famous that “structural uncertainties” stay for the corporate that are extra of a headwind versus the macro points stemming from the regional banking disaster. USB RF YTD mountain UBS downgraded U.S. Bankcorp on Monday, citing “structural uncertainties” afflicting the corporate after a broader banking liquidity disaster final month. “We entered 2023 naming USB as one among our Prime Picks. However that was within the ‘earlier than occasions.’ (Earlier than the liquidity disaster.) Whereas strategically sound, USB’s acquisition of UB (closed in December 2022) places it in a precarious place within the ‘after occasions,”’ UBS analyst Erika Najarian wrote on Monday. Shares of U.S Bancorp have pulled again 18% 12 months to this point, stemming largely from a broader liquidity disaster spurred from the collapse of Silicon Valley Financial institution and Signature Financial institution final month . In the meantime, UBS upgraded peer regional financial institution Areas Monetary to a purchase score, and highlighted the corporate’s stability sheet administration which can assist it “climate the present rate of interest storm higher than friends.” — CNBC’s Michael Bloom contributed to this report.