FBR Capital Cuts PT on Capital One (COF) after Asset Sale, Removes from Top Picks List

February 20, 2013 7:12 AM EST
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Price: $87.34 +0.71%

Rating Summary:
    16 Buy, 16 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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FBR Capital lowered its price target on Capital One Financial (NYSE: COF) from $68 to $63 and removed the stock from its Top Picks list following the sale of $7 billion of assets. The firm is maintaining its Outperform rating.

"We are also removing COF from the FBR Top Picks list, given what we view as a lack of near-term catalysts and increased investor confusion regarding the private-label strategy," the analyst said. "We reduce our FY13 core EPS estimate from $6.71 to $6.54 and reduce our FY14 EPS estimate from $6.82 to $6.46, reflecting the lost profitability resulting from the sale of the $7 billion Best Buy private-label credit card receivables portfolio. The sale is not expected to generate a meaningful gain or loss, given that the proceeds should approximate book value. Although we do not foresee any meaningful near-term catalysts, we view COF shares as cheap with an increasing ability to return capital over the course of the next several years."

For an analyst ratings summary and ratings history on Capital One Financial click here. For more ratings news on Capital One Financial click here.

Shares of Capital One Financial closed at $53.12 yesterday.

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