S&P Capital IQ Reiterates its BUY Rating on Capital One, Target Price Reduced

October 24 00:00 2011

New York, October 24 (RainbowNewsLine.com) – Analyst Robert McMillan of S&P Capital IQ reiterates his BUY rating on the shares of Capital One (NYSE: COF). The target price has been reduced from $60 to $54.

Analyst Robert McMillan, in a research report published on October 22, mentions that the company reported its Q3 EPS ahead of the estimates and the consensus. Capital One’s net margins rose to 7.39% from 7.21% during Q3, while the charge-off ratio fell to 2.52% from 4.82%, the analyst says. Despite the pessimistic views on the economy, the company’s loan balances grew while the credit metrics remained healthy during Q3, the analyst adds. The EPS estimate for 2011 has been raised from $7.13 to $7.68, to reflect higher revenue projections.

  Categories: