KBW analyst Sanjay Sakhrani on in a report on Friday that the increased putback exposure "is a negative headline as it now represents 7% of the company's tangible book value as of 4Q12." The analyst added that "while COF provided updated color around the sale of the Best Buy portfolio, we think it still remains difficult to quantify the impact to earnings with any specificity at this time."
Sakhrani on Feb 19 estimated that the Best Buy card sale would lower Capital One's annual earnings by $0.15 to $0.25 a share.
"Overall, while the announcements are not a positive, ultimately we believe that the stock currently trades at depressed levels and COF remains an Outperform rated stock," Sakhrani wrote.
The analyst's price target for Capital One's shares is $65.00, and he estimates the company will earn $6.30 a share this year, with EPS rising to $6.33 in 2014.COF data by YCharts
Interested in more on Capital One? See TheStreet Ratings' report card for this stock. -- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn