09:30 AM EDT, 04/17/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We decrease our 12-month target price by $1 to $41, 9.3x our 2025 EPS estimate, in line with the peer average of 9.2x. We lower our 2024 EPS view by $0.03 to $4.00 and reduce 2025's by $0.09 to $4.42 given reduced net interest income expectations. USB posted Q1 adjusted EPS of $0.90 vs. $1.16 a year ago, $0.03 above consensus. Net interest income fell 3% Q/Q as the bank's net interest margin (-8 bps to 2.70%) hit its lowest level in nearly two years. Driving the weakness was 6% Q/Q noninterest-bearing deposit outflows as clients moved their balances into more attractive interest-bearing accounts. Loan balances fell 1% as an industry-wide slowdown in commercial loan activity impacted results. Credit quality deteriorated with net charge-offs rising to 0.53% (+4 bps Q/Q), marginally worse than pre-pandemic levels. Despite the relatively tough quarter, we are encouraged by the bank's improved capital profile (10.0% CET1 ratio vs. 8.5% when SVB collapsed) and healthy allowance for credit losses of 2.11%.