Truist Raises U.S. Bancorp Price Target to $66 on Margin Improvement
Truist upgraded U.S. Bancorp to Buy, raising its price target to $66 from $61 and citing improving net interest margin plus enhanced balance sheet flexibility. Q4 adjusted EPS climbed 18% to $1.26, net revenue hit $7.4 billion with $28.7 billion for the full year, and BTIG acquisition closed.
1. Truist Upgrade Details
On February 26, Truist analyst John McDonald upgraded U.S. Bancorp to Buy from Hold, raising the price target to $66 from $61. He highlighted improving net interest margin, greater capital flexibility and potential for sustainable positive operating leverage over the next few years.
2. Q4 Financial Performance
In Q4 2025, U.S. Bancorp reported adjusted earnings per share of $1.26, up 18% year-over-year, and posted record quarterly net revenue of $7.4 billion. Full-year net revenue reached $28.7 billion, and positive operating leverage expanded by 440 basis points through disciplined expense management.
3. BTIG Acquisition and Capital Markets Strategy
U.S. Bancorp completed its strategic acquisition of BTIG, transitioning from a long-term partnership to full ownership. The deal is designed to bolster its capital markets platform, diversify revenue streams and enhance trading and advisory services.
4. Segment Growth and Strategic Priorities
Net revenue in the Global Fund Services segment grew at an 11% compound annual rate since 2021 and increased 12% in 2025, underscoring strong growth momentum. Payment transformation and expansion in the small business segment continue as key strategic priorities to drive future growth.