Raymond James upgraded U.S. Bancorp (NYSE:USB) to Strong Buy from Outperform and raised its price target to $57 from $51, citing growing confidence that the bank will achieve its medium-term profitability goals.

The analysts pointed to expected positive operating leverage of over 200 basis points this year and more than 150 basis points in 2026 as key drivers of margin expansion and earnings growth. Such improvements, Raymond James argues, should help shift investor sentiment from skepticism to optimism, transforming USB’s current “show me” narrative into a compelling growth story.

With shares still trading at a discount relative to peers, the firm sees a unique buying opportunity, believing that reaching these profitability milestones could catalyze a re-rating of the stock and deliver significant upside for investors.