Oppenheimer Reaffirms Their Hold Rating on Capital One Financial (COF)
In a report released yesterday, Dominick Gabriele from Oppenheimer maintained a Hold rating on Capital One Financial (COF). The company’s shares closed yesterday at $88.05.
“COF reported 1Q19 EPS of $2.86. We peg recurring EPS at ~$2.66 vs. our/ consensus’ $2.55/$2.72. Enhancing their platform by moving some functions to the cloud, operating efficiency (total expenses ex marketing) could fall an additional ~2% in 2021. There are likely a lot of factors that could alter what 2021 ultimately looks like for profitability, but this means the underlying business is getting more efficient. COF also announced they are likely to “meaningfully” increase share repurchases vs. the previous $1.2B level in the next CCAR. We went to $2B of repurchases. We still find it less likely COF significantly accelerates loan growth, believe that NIM could be under some pressure from deposit costs and higher NCOs than the Street. Thus we remain on the sidelines.”
According to TipRanks.com, Gabriele is a 3-star analyst with an average return of 2.2% and a 68.8% success rate. Gabriele covers the Financial sector, focusing on stocks such as Discover Financial Services, Credit Acceptance Corp, and Santander Consumer USA.
Capital One Financial has an analyst consensus of Moderate Buy, with a price target consensus of $112.
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Capital One Financial’s market cap is currently $41.18B and has a P/E ratio of 7.46. The company has a Price to Book ratio of 0.80.
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Capital One Financial Corp. is a financial holding company, which engages in the provision of financial products and services. It operates through the following segments: Credit Card, Consumer Banking, and Commercial Banking. The Credit Card segment offers domestic consumer and small business card lending, and international card lending businesses.