UPDATE: Goldman Sachs Upgrades Capital One Financial to Buy on Upside Potential
Goldman Sachs upgraded Capital One Financial (NYSE: COF) from Neutral to Buy and announced a $75.00 price target.
Goldman Sachs said, "We upgrade COF to Buy from Neutral with 21% upside to our $75 price target. We see shares outperforming due to (1) upside to out-year estimates from expense leverage as acquisition related costs subside; and (2) upside from capital returns. While 2013 is a transition year, we see room for a meaningful increase in 2014 ($2 dividend and $2bn buyback). While we are not making a “multiple expansion call”, stocks that can make the transition tend to be rewarded with higher valuations (average two points on P/E)."
Capital One Financial closed at $61.99 on Friday.
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