UPDATE: Goldman Sachs Upgrades Capital One Financial to Buy on Upside Potential

Goldman Sachs upgraded Capital One Financial

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.