Nomura Securities Maintains a 'Buy' on Capital One Financial (COF); Funding HSBC without ING
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Price: $148.87 --0%
Rating Summary:
15 Buy, 22 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 11 | New: 6
Rating Summary:
15 Buy, 22 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 11 | New: 6
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Nomura Securities maintains a 'Buy' on Capital One Financial (NYSE: COF) price target of $54.00.
Analyst, Brian Foran, said, "Last week, the Fed delayed the meeting on the ING Direct deal, and now the Fed has delayed the decision. Our base case is that ING Direct (NYSE: ING) goes through, but investors have asked for the backup plan if it doesn’t. We estimate ING Direct and HSBC Card are over $1.00 accretive to EPS, but only one-quarter of this comes from ING Direct. If ING Direct is not approved, we think Capital One can fund HSBC Card’s (NYSE: HBC) $28bn of loans by selling securities, issuing ABS, raising deposits and perhaps some bridge finance from HSBC. Strategically, COF’s funding position would not be ideal. COF’s loan to deposits today is 106% vs. 89% for bank peers. Again, our base case is ING Direct is approved. Our EPS estimates for 2012/2013 are unchanged at $5.50/$5.67."
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 $48.49 yesterday.
Analyst, Brian Foran, said, "Last week, the Fed delayed the meeting on the ING Direct deal, and now the Fed has delayed the decision. Our base case is that ING Direct (NYSE: ING) goes through, but investors have asked for the backup plan if it doesn’t. We estimate ING Direct and HSBC Card are over $1.00 accretive to EPS, but only one-quarter of this comes from ING Direct. If ING Direct is not approved, we think Capital One can fund HSBC Card’s (NYSE: HBC) $28bn of loans by selling securities, issuing ABS, raising deposits and perhaps some bridge finance from HSBC. Strategically, COF’s funding position would not be ideal. COF’s loan to deposits today is 106% vs. 89% for bank peers. Again, our base case is ING Direct is approved. Our EPS estimates for 2012/2013 are unchanged at $5.50/$5.67."
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 $48.49 yesterday.
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