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

July 10, 2012 8:19 AM EDT Send to a Friend
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Price: $82.75 --0%

Rating Summary:
    20 Buy, 6 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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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.


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