Nomura Securities Remains Sidelined as Capital One Financial (COF) Announces Acquisition of Cabela’s Co-Brand Credit Card Portfolio

October 4, 2016 9:20 AM EDT
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Price: $86.87 -0.54%

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Nomura Securities reiterated a Neutral rating and $72.00 price target on Capital One Financial (NYSE: COF) following the company's announced acquisition of the Cabela’s co-brand credit card portfolio. Nomura believes that the deal could translate into an EPS upside of 4% to 2017 estimates.

Analyst Bill Carcache commented, "COF announced the acquisition of the Cabela’s $5.2bn co-brand credit card portfolio (includes ~$5bn in funding liabilities), becoming the exclusive issuer of the Cabela’s CLUB Visa card (previously issued by World’s Foremost Bank, CAB’s bank subsidiary). The portfolio will be acquired for ~$200mn (par value of the receivables less par value of assumed liabilities) and includes revenue- and loss-sharing arrangements. The deal is expected to close in 1H17."

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 $72.13 yesterday.

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