FBR Capital Reiterates an 'Outperform' on Capital One Financial (COF); 1Q11 EPS Beat Driven by Improving Credit and Margin Expansion
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Price: $145.97 -1.95%
Rating Summary:
15 Buy, 22 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
15 Buy, 22 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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FBR Capital reiterates an 'Outperform' on Capital One Financial (NYSE: COF), PT increased from $53 to $60.
FBR analyst says, "We also increase our FY11 EPS estimate to $6.60, from $5.30, and increase our FY11 EPS estimate to $5.50, from $5.25, based on an improving outlook for balance sheet growth and higher margin levels. While investors have come to expect earnings beats from the credit card sector due to reserve release, we note that COF's beat was driven by BOTH stronger revenues and reserve release. While COF shares reacted positively to the beat, we expect further upside in the shares, given management's positive outlook for modest growth in U.S. Card in 2H11, as well as both consumer and commercial banking. Improvements in profitability helped mitigate the sequential increase in the disallowed DTA and should accelerate its recovery. Consequently, we believe shares are attractively valued at current levels."
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 $53.26 yesterday.
FBR analyst says, "We also increase our FY11 EPS estimate to $6.60, from $5.30, and increase our FY11 EPS estimate to $5.50, from $5.25, based on an improving outlook for balance sheet growth and higher margin levels. While investors have come to expect earnings beats from the credit card sector due to reserve release, we note that COF's beat was driven by BOTH stronger revenues and reserve release. While COF shares reacted positively to the beat, we expect further upside in the shares, given management's positive outlook for modest growth in U.S. Card in 2H11, as well as both consumer and commercial banking. Improvements in profitability helped mitigate the sequential increase in the disallowed DTA and should accelerate its recovery. Consequently, we believe shares are attractively valued at current levels."
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 $53.26 yesterday.
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