Analyst Ryan Nash of Goldman Sachs maintained a Buy rating on Capital One Financial (COF – Research Report), with a price target of $231.00.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Ryan Nash’s rating is based on Capital One Financial’s strong performance in its credit card and auto loan segments. The company’s April metrics showed that both card delinquencies and net charge-offs were below expectations, indicating robust credit quality. While end-of-period card loans were slightly lower than anticipated on a seasonal basis, they remained consistent year-over-year, demonstrating stability. In the auto loan segment, delinquencies were significantly below expectations, and net charge-offs improved month-over-month, suggesting positive trends in credit performance.
Additionally, the growth in auto end-of-period loans exceeded expectations, reflecting a healthy expansion in this segment. Although card loan balances grew at a slower rate than seasonal trends, they still showed a year-over-year increase, indicating steady growth. Overall, the combination of strong credit performance and loan growth in both segments supports the Buy rating, as these factors are likely to be well-received by the market.
Nash covers the Financial sector, focusing on stocks such as Synchrony Financial, Bread Financial Holdings, and American Express. According to TipRanks, Nash has an average return of 11.7% and a 64.36% success rate on recommended stocks.
In another report released on May 16, KBW also maintained a Buy rating on the stock with a $232.00 price target.