Morgan Stanley Maintains Overweight, $55 PT on Capital One

Morgan Stanley reiterates its Overweight rating and $55 price target on Capital One (NYSE: COF) as the company misses but has deals in the pipeline that should boost shares.

Morgan Stanley says, "COF missed on expenses as it preps for ING-D and HSBC card acquisitions. We say buy the noise as the deals should boost EPS and shares as they are closed and integrated into COF in 1q12 and 2q12. Cyclically strong credit in 1Q12 also helps."

COF closed at $48.77 per share on Thursday.