Goldman Sachs Upgrades Capital One Financial (COF) to Buy, Sees Return of Capital as Next Driver

Goldman Sachs upgraded Capital One Financial (NYSE: COF) from Neutral to Buy with a price target of $75.00 (from $65.00), suggesting 21% upside.

As acquisition-related costs subside and the company moves beyond loan run-off in 2013, Goldman sees upside to out-year estimates from expense leverage. While 2013 will likely be a transition year for capital returns, there is room for a meaningful increase in 2014, they said, which will reward the company with a higher valuation (two point P/E expansions, on average).

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 $61.99 yesterday.

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