Capital One’s Additional Fund Raising May Come In the Form of Dilutive Equity Offering

Analysts at CLSA Asia Pacific Markets maintained their “underperform” rating on Capital One (NYSE: COF). The target price for COF is set to $40.

According to Capital One, its quarter-end Tier 1 to risk-weighted assets ratio is 11.8%. CLSA Asia Pacific Markets said that a risk of COF raising additional capital in the near future continues to be present. CLSA Asia Pacific Markets expresses its concern about COF may undertake dilutive equity offering if it does feel the need to raise additional capital.

CLSA Asia Pacific Markets believes that Capital One’s shares would remain range-bound in the near future.