UPDATE: Stifel Nicolaus Cuts PT to $65 on Capital One Financial Following Dilutive Diversiture, Q4 Results

Stifel Nicolaus maintained Capital One Financial COF with a Buy rating and lowered the price target from $69.00 to $65.00. Stifel Nicolaus noted, "With COF following up disappointing 4Q12 results with a surprising -- and dilutive -- divestiture, we are significantly less enthusiastic about the stock and have been forced to revisit our investment thesis. Although post-acquisition earnings power now appears much lower, the impact on 2014 estimates is dampened by COF's growing potential for capital return, possibly even in 2013. Combined with a markedly improved risk/reward, we are maintaining our Buy rating, but lowering our target price to $65 based on 9.5x our new 2014E. However, with a lack of clear near-term catalysts and growing top line concerns, we are removing the shares from the Stifel Select List." Capital One Financial closed at $52.28 on Friday.