In a report released yesterday, Moshe Orenbuch from TD Cowen maintained a Buy rating on Capital One Financial, with a price target of $261.00.
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Moshe Orenbuch has given his Buy rating due to a combination of factors including Capital One Financial’s strong third-quarter performance, which exceeded expectations. The company reported an adjusted EPS significantly higher than both the firm’s and the market’s estimates, largely due to a larger reserve release and improved revenue. This indicates better-than-expected profitability, particularly in the domestic card segment, as economic forecasts and credit conditions improved.
Additionally, the announcement of a substantial buyback authorization following an internal capital review further supports the positive outlook. Despite some anticipated moderation in Discover card portfolio growth, Capital One’s strategic integration and marketing plans are expected to leverage its robust credit platform for future growth. The company’s strong capital position, evidenced by a high CET1 ratio and a significant excess capital, along with a notable dividend increase, further solidifies the Buy recommendation.
In another report released on October 7, UBS also maintained a Buy rating on the stock with a $266.00 price target.