According to these firms, U.S. Bancorp continues to distinguish itself from peers with its diversified earnings stream, attractive business mix, modest market-sensitive revenues, solid management team and conservative risk management. While management’s rationale behind its balance sheet repositioning strategy and aggressive securities purchases is appreciated, the strategy falls short of delivering quality loan growth and hopes of multiple expansions in the current interest rate environment. Moreover, with its above-average commercial real estate exposures, credit costs are expected to remain elevated. Further, the company continues to face slow economic recovery and low interest rate environment, which these firms believe would hamper U.S. Bancorp’s profitability. The stock is therefore expected to remain range bound in absence of any further signs of economic recovery.