Nomura Securities Maintains a 'Buy' on Capital One Financial (COF); Big Capital. Big EPS. No Dividend
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Price: $227.34 --0%
Rating Summary:
28 Buy, 14 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
Rating Summary:
28 Buy, 14 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
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Nomura Securities maintains a 'Buy' on Capital One Financial (NYSE: COF), PT $58.
Nomura analyst, Brian Foran, said, "The second round of stress tests in conjunction with Basel 3 seemed designed to give investors clarity on what constitutes excess capital. That said, clarity seems elusive after learning that Capital One was denied a dividend increase despite high and building capital (8.5% Basel 3 Tier 1 common, building at ~150bp per year). Thus, while capital is high and building at the banks, investors are putting a fairly low value on it, as the definition of excess capital remains elusive."
"Overall, we think the earnings environment remains favorable for card lenders, and this view is supported by Discover’s recent earnings. Thus, at 9x earnings, we believe COF offers attractive value."
For more ratings news on Capital One Financial click here and for the rating history of Capital One Financial click here.
Shares of Capital One Financial closed at $51.41 yesterday.
Nomura analyst, Brian Foran, said, "The second round of stress tests in conjunction with Basel 3 seemed designed to give investors clarity on what constitutes excess capital. That said, clarity seems elusive after learning that Capital One was denied a dividend increase despite high and building capital (8.5% Basel 3 Tier 1 common, building at ~150bp per year). Thus, while capital is high and building at the banks, investors are putting a fairly low value on it, as the definition of excess capital remains elusive."
"Overall, we think the earnings environment remains favorable for card lenders, and this view is supported by Discover’s recent earnings. Thus, at 9x earnings, we believe COF offers attractive value."
For more ratings news on Capital One Financial click here and for the rating history of Capital One Financial click here.
Shares of Capital One Financial closed at $51.41 yesterday.
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