Capital One initiated with a Buy at Citi

Citi initiated coverage of Capital One Financial with a Buy rating and $190 price target. Capital One is one of the premier financial services companies in the U.S., the analyst tells investors in a research note. The firm says its work found that Capital One has substantial competitive advantage in credit cards, which is one of banking’s most profitable segments. Citi says its bull case is Capital One’s current valuation significantly discounts the longer term return on tangible common equity outlook and that it is possible the catalyst to unlock this may be the Discover acquisition.