UPDATE: JPMorgan Downgrades Capital One Financial (COF) to Neutral

(Updated - July 24, 2015 11:31 AM EDT)

JPMorgan downgraded Capital One Financial (NYSE: COF) from Overweight to Neutral with a price target of $91.00 (from $90.00). The change follows Q2 results. Analyst Richard Shane expected shares to decline Friday following the miss, and he now thinks the market is appropriately valuing future earnings.

"Since spring 2012, the stock’s annualized total return has been 18.8% vs. 16.5% for the S&P 500. With an implied 2.0% annualized total return to our Dec-2016 PT, we believe the market is appropriately valuing future earnings," said Shane.

"Our PT is based on a 10.5x multiple of our $8.58 estimate of 2017 earnings. We lowered our target multiple from 10.7x, due to higher expected expenses. Our PT implies a 2.0% annualized total return," added the analyst.

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 $90.77 yesterday.

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