UPDATE: Baird Upgrades Capital One Financial (COF) to Neutral

December 1, 2021 4:05 AM EST
Get Alerts COF Hot Sheet
Price: $150.27 -0.88%

Rating Summary:
    26 Buy, 12 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 29 | Down: 34 | New: 45
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(Updated - December 1, 2021 5:36 AM EST)

Baird analyst David George upgraded Capital One Financial (NYSE: COF) from Underperform to Neutral with a price target of $145.00.

The analyst comments "Recent underperformance has helped overall bank risk/reward, but still generally not compelling yet, in our view; taking short call off COF and upgrading to Neutral. Banks have lagged the broader market by ~5% or so in Q4, as 10-year yields have fallen a bit in recent weeks as market participants’ fears about new COVID variants have impacted the stocks. Although the fears over variants are valid, we also think the market may be re-pricing intermediate term economic growth lower as government spend declines, tax rates increase, and there is a higher base rate of inflation which is likely to impact consumer spend over the near to intermediate term. Card stocks have meaningfully lagged financials overall since Q3 earnings season, and we find the risk/reward of COF to be more balanced in the low $140s (~1.45x TBV). Given this, we are upgrading the stock to Neutral following recent underperformance (-20.1% since downgrade vs. -0.6% BKX and +1.3% S&P 500)."

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 $143.92 yesterday.


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