UPDATE: Goldman Sachs Lowers PT on Capital One Financial on Continued Underperformance

In a report published Friday, Goldman Sachs analyst Ryan M. Nash reiterated a Buy rating on Capital One Financial Corp. (NYSE: COF), but lowered the price target from $69.00 to $65.00.In the report, Nash noted, “With shares trading at just 8x 2013 consensus estimates (11.7x for regional banks), we believe taking action on several strategies would likely improve out-year earnings and narrow its valuation gap vs. peers. This includes 1) implementing a $250-$325mn cost savings program to make up for the $0.30-$0.40 of lost earnings from BBY; 2) given limited loan demand and excess liquidity, lowering deposit pricing by 10-20bps, which we estimate would add $0.24 to earnings, and 3) re-applying to the Fed to repurchase shares in 2013. We believe the BBY portfolio loss frees up 25-35bps of B3 capital, implying COF could apply for $750mn-$1bn of repurchases, which would add $0.17 to following year estimates. The combination of these strategies could push out-year estimates up to $0.75 higher and push shares into the mid 60's.”Capital One Financial Corp. closed on Thursday at $53.71.