UPDATE: Nomura Raises PT to $63 on Capital One Financial on Solid Quarter
Nomura reiterated its Neutral rating on Capital One Financial (NYSE: COF) but raised its price taget from $54 to $63.
Nomura said, "The beat (relative to both our and consensus estimates) was driven by strong net interest income results and better-than-expected efficiency ratios. We've been skeptical of COF's ability to control expenses, but this quarter's results prove they've made greater progress integrating recent deals than we anticipated, with its efficiency ratio declining by ~950bps QoQ. Although loan growth remains challenging, this quarter's results lead us to believe that we were underestimating COF's post-deal earnings power. We're raising our estimates to reflect higher-than-expected revenue margins and better-than-expected efficiency ratios over the next several quarters.
Capital One Financial closed at $57.30 on Thursday.
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