What Made Oppenheimer Upgrade Capital One Financial’s Stock?

By Ryan Adsit

Oppenheimer analyst Ben Chittenden upgraded Capital One Financial (NYSE: COF) to Buy yesterday and set a price target of $113. The company’s shares closed on Friday at $92.90.

Chittenden said:

“Investors have been waiting/wanting to see the coiled spring of earnings improvement at COF for some time. It unfortunately was elusive as the delinquency formation in the card business was rising. We are now at a point where the delinquency formation is improving, and 2Q18 expectations seem too low to us. We can imagine that 2Q18 will lead to both a positive EPS revision cycle as well as multiple expansion. It will likely play out over the remainder of 2018 and into 2019. Thus, we are upgrading shares to and setting a $113 price target.”

According to TipRanks.com, Chittenden is a 3-star analyst with an average return of 1.3% and a 54.9% success rate. Chittenden covers the Financial sector, focusing on stocks such as Discover Financial Services, Credit Acceptance Corp, and Synchrony Financial.

Capital One Financial has an analyst consensus of Moderate Buy, with a price target consensus of $114.67, which is a 23.4% upside from current levels. In a report issued on July 2, Credit Suisse also upgraded the stock to Buy with a $120 price target.

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Based on Capital One Financial’s latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $7.83 billion and net profit of $1.34 billion. In comparison, last year the company earned revenue of $7.33 billion and had a net profit of $1.03 billion.

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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.