Jefferies Has Hold on Capital One Financial

Jefferies & Co. is out with a research report on Capital One Financial (NYSE: COF) and it has a Hold rating and a $40 price target on shares.

In a note to clients, Jefferies & Co. writes, "Credit fundamentals are turning and we are beginning to see a relative inflection in credit. Early stage delinquencies are moving higher and we expect credit losses to follow. Despite an inexpensive valuation, we see no compelling reason to buy the stock in front of credit normalization. Assume coverage Hold."

Shares of COF closed at $37.75 yesterday.