US Bancorp: 30-50% Upside

A New York presenter likes US Bancorp (NYSE: USB, $27.22) at this level. The 5th largest bank in the US has maintained its conservative credit culture during the recent crisis and used severely discounted valuations in the space to make targeted acquisitions. USB doesn't get enough credit for its robust fee businesses. Recent results point to a pick up in loan growth, but significant room for improvement remains, with only a 26% utilization rate in the wholesale operation. A significant dividend increase is the management's top priority, pending a response from the FED on the bank's comprehensive capital plan.