BUZZ-Street View: US Bancorp CEO transition occurring more quickly than anticipated
U.S. Bancorpannounced that Gunjan Kedia will become CEO on April 15, succeeding Andy Cecere. The transition is happening faster than expected, with analysts from Piper Sandler and BofA Global Research commenting on the timing. Kedia's appointment comes as USB shifts from a multi-year investment phase to revenue growth. While some analysts see a need for revitalization in USB's stock performance, others, like Morgan Stanley, do not expect significant strategic changes under Kedia's leadership.
U.S. Bancorp (USB.N) announced on Tuesday that current President Gunjan Kedia would become its CEO, effective April 15, succeeding Andy Cecere
USB shares closed down 2.2% on Tuesday
FASTER TIMING
Piper Sandler (“overweight” PT: $55) says transition is occurring faster than anticipated, but expects a seamless one as Kedia was the heir-apparent and knows the bank’s inside-and-out
Adds that Kedia is becoming CEO at a pivotal time for USB as it turns the corner from a multi-year investment phase to revenue growth
BofA Global Research (“buy”, PT: $57) says CEO transition announcement was somewhat surprising timing wise
Adds that given Kedia became USB’s president in May, the assumption was that it would likely be another one to two years before a CEO transition was announced
Truist Securities (“hold”, PT: $54) says there’s an emerging feeling within investors that a shot-in-the-arm is needed as USB stock lags peers
Morgan Stanley (“overweight”, PT: $59) doesn’t anticipate a significant shift in strategy, given Kedia’s active role in shaping USB’s direction as part of current management
