Nomura Securities Maintains a 'Buy' on Capital One Financial (COF); Seasonal Increase in Delinquency, as Expected

Nomura Securities maintains a 'Buy' on Capital One Financial (NYSE: COF) price target of $58.00.

Nomura analyst, Brian Foran, said, "Capital One’s delinquencies were up 22bp, although excluding an accounting change the core was up 11bp, which is slightly better than normal September seasonality. While a headline increase in delinquency is never fun, it is easier to swallow as US card charge-offs fell from 4.1% last month to 3.9% this month, core loans were flat, and international and auto performed well. Specifically: 1) Core delinquency in line with seasonality; 2) Charge-offs down vs. normal seasonality up; and 3) Loan growth – modestly positive, but unclear accounting impact."

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 $42.06 yesterday.

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