U.S. Bancorp Plunges 5% on JPMorgan Downgrade

On April 4, 2025, U.S. Bancorp's stock experienced a significant drop of 5% during pre-market trading, reflecting a notable shift in investor sentiment.

JPMorgan's recent downgrade of U.S. Bancorp from Neutral to Underweight, coupled with a reduced price target from $51 to $43.50, has been a key factor influencing the stock's performance. This move by JPMorgan comes amid an uncertain macroeconomic environment, where several factors are weighing on the bank's outlook.

Analysts at JPMorgan, including Juneja, have cited various concerns that led to the downgrade. These include the impact of tariffs and broader economic uncertainties, which have prompted a more cautious stance on the bank's prospects. The downgrade reflects a shift from a neutral rating to an underweight opinion, indicating a bearish outlook on the stock.

Despite the downgrade, Wolfe Research has taken a contrasting view, upgrading U.S. Bancorp on valuation grounds. This divergence in analyst opinions highlights the mixed sentiment surrounding the stock, with some investors seeing value while others remain cautious.