Capital One Financial (COF) PT Raised to $132 at BMO Capital
BMO Capital raised its price target on Capital One Financial (NYSE: COF) to $132.00 (from $126.00) while maintaining a Outperform rating following strong results. The firm raised forward estimates by 4-6% (due to lower provisions and improved operating efficiency).
Analsyt James Fotheringham commented, "COF shares offer meaningful re-rating potential; its balance sheet (95% LDR, 70% consumer loan concentration) lies halfway between that of consumer lenders (which trade at 9x two-year-forward rolling P/E) and regional banks (trading at 13x), and yet COF trades at only 8x. COF remains our highest-conviction long-term investment recommendation."