UPDATE: Sterne Agee Raises Target on Capital One Financial to $60

Sterne Agee raises its price target to $60 on Neutral-rated Capital One Financial

on valuation and acquisitions. Sterne Agee notes, "We are raising our price target to $60 based on two factors: 1) the increase in bank valuation ratios and 2) the passing of key milestones tied to the ING and the card portfolio acquisitions. Our price target is based on 2013 EPS and current price to book and price to tangible book ratios. On an operating basis we are looking for EPS in 2012 of $6.00 and EPS in 2013 of $7.00. These estimates are not adjusted to reflect merger-related transaction cost." COF closed at $55.38 a share on Wednesday.