Deutsche Bank Starts Capital One Financial (COF) at Buy

Deutsche Bank initiated coverage on Capital One Financial (NYSE: COF) with a Buy rating and a price target of $92.00.

Analyst David Ho said, "Credit card loan growth expectations are low at COF: closer to 2-3% vs. 6-7% for DFS. We see upside from: 1) credit line increases, which have a larger impact on COF: only a $100 increase per line among its targeted customers could be a +1% lift to EPS and 2) adding private label and co branded assets— e.g. winning Costco USA could boost revenues by 4%+. COF also has more downside protection from better asset sensitivity (a positive if rates rise) and more expense levers (e.g. branch reductions) if there is a turn in the benign credit environment for credit card."

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 $81.57 yesterday.

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