“With COF following up disappointing 4Q12 results with a surprising — and dilutive — divestiture, we are significantly less enthusiastic about the stock and have been forced to revisit our investment thesis. Although post-acquisition earnings power now appears much lower, the impact on 2014 estimates is dampened by COF’s growing potential for capital return, possibly even in 2013. Combined with a markedly improved risk/reward, we are maintaining our Buy rating, but lowering our target price to $65 based on 9.5x our new 2014E. However, with a lack of clear near-term catalysts and growing top line concerns, we are removing the shares from the Stifel Select List.,” Stifel Nicolaus’ analyst wrote.
Capital One traded down 0.35% on Monday, hitting $51.29. Capital One has a 1-year low of $47.99 and a 1-year high of $62.92. The stock’s 50-day moving average is currently $56.87. The company has a market cap of $29.707 billion and a price-to-earnings ratio of 8.36.
Several other analysts have also recently commented on the stock. Analysts at Sanford C. Bernstein cut their price target on shares of Capital One from $68.00 to $64.00 in a research note to investors on Thursday, February 21st. Separately, analysts at JPMorgan Chase reiterated an overweight rating on shares of Capital One in a research note to investors on Wednesday, February 20th. They now have a $58.00 price target on the stock. Finally, analysts at Guggenheim downgraded shares of Capital One from a buy rating to a neutral rating in a research note to investors on Wednesday, February 20th. They now have a $59.00 price target on the stock, down previously from $66.00.
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