Skip to main content

Market Overview

Citi Goes Shopping For Credit Card Initiations

Citi Goes Shopping For Credit Card Initiations

Citi initiated coverage of four U.S. credit card companies Thursday, two of which were given bullish ratings and two given neutral ratings.

The Analyst

Citi's Jill Shea initiated coverage of the following companies:

  • Capital One Financial Corp. (NYSE: COF) initiated at Buy, $115 price target.
  • American Express Company (NYSE: AXP) initiated at Buy, $110 price target.
  • Discover Financial Services (NYSE: DFS) initiated at Neutral, $78 price target.
  • Synchrony Financial (NYSE: SYF) initiated at Neutral, $37 price target.

The Thesis

The bullish case for Capital One is based on significant tech investments, tangible benefits from a switch to the cloud and expectations for revenues to grow faster than expenses as its technology infrastructure becomes highly scalable.

The bullish case for American Express is based on strong billings momentum should drive EPS growth, credit quality "seasoning" and management's provision guidance looking reasonable.

On the other hand, a neutral stance on Discover Financial is based on expectations for a tick-up in back book losses, which implies a higher run-rate provision compared to the Street's expectations.

Related Links:

'Suboptimal' Risk-Return Triggers Capital One Downgrade

Synchrony Financial Is A 'Clear Leader In An Underappreciated' Market, Buckingham Says


Related Articles (AXP + COF)

View Comments and Join the Discussion!

Posted-In: Citi credit card stocks credit cards Jill SheaAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

Latest Ratings

GIKColliers SecuritiesInitiates Coverage On14.0
SANWLake StreetInitiates Coverage On6.0
LILAMorgan StanleyDowngrades15.0
BEJP MorganUpgrades36.0
NEXACredit SuisseUpgrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at