11:15 AM EDT, 10/23/2025 (MT Newswires) -- US Bancorp's ( USB ) credibility is improving after two good quarters, with management focused on building investor trust, Deutsche Bank said in a note Thursday.

The analysts noted that US Bancorp ( USB ) is more credit defensive than some peers if credit concerns increase, and faces limited mergers and acquisitions risk.

Earnings per share are projected to rise 8% in 2026, trailing peers, but Deutsche Bank said it sees potential upside from a higher net interest margin, which could top 3% in 2027.

Shares have climbed 3% since the latest earnings release but remain flat for the year, matching peers after lagging by 12% last year, according to the note.

The company's Q3 results beat expectations for a second straight quarter, reversing a trend of disappointments, Deutsche Bank said.

Management is prioritizing credibility and transparency, the analysts said, adding that further details on key business drivers are expected in future updates.

Deutsche Bank upgraded the company's stock to buy with a $52.50 price target.