Nomura Securities Assumes Coverage (and Downgrades) Capital One Financial (COF) to Neutral; Weak Returns

Article Stock Quotes (1) Comments (0)

Nomura Securities assumes coverage and downgrades Capital One Financial (NYSE: COF) to Neutral. PT $54.00.

Analyst, Bill Carcache, said, "Weak economic returns and dilution from past deals makes us cautious. In addition, portfolio run-off and weak loan demand will challenge loan and revenue growth. We estimate the company must grow its non run-off loan book 7%+ to offset the run-off expected next year. Shares are trading at ~8x our 2013 EPS estimate, appropriate given our cautious outlook and the company’s poor track record. FY12E / 13E EPS $6.00 / $6.78 below Street at $6.11 / $6.93, respectively."

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 $54.23 yesterday, with a 52 week range of $35.94-$57.49.

---

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW

---

*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here

---

---

You May Also Be Interested In

• UPDATE: BofA/Merrill Lynch Downgrades Cliffs Natural Resources (CLF) to Underperform
• Goldman Sachs Upgrades Tanger Factory Outlet Centers (SKT) to Neutral
• UPDATE: Canaccord Genuity Starts T-Mobile US, (TMUS) at Hold

Create E-mail Alert Related Categories

Downgrades, New Coverage

Related Entities

Nomura

Add Your Comment

Name

Subject

Body

Share on Facebook

Verification
can't see the text?
click here to refresh the image.
what's this?