Capital One (COF) Stock Advances After D.A. Davidson Upgrade
NEW YORK (TheStreet) -- Shares of Capital One Financial (COF) - Get Report are rising 1.71% to $62.95 in pre-market trading on Friday as D.A. Davidson lifted its rating on the stock to "buy" from "neutral."
The firm maintained its $76 price target on shares of the McLean, VA-based financial services holding company.
"We are upgrading Capital One to...reflect our view that credit quality remains stable, loan growth is sustaining longer than we anticipated, and valuation is attractive," D.A. Davidson wrote in an analyst note this morning.
While the firm acknowledges that there is an extended positive credit cycle for credit cards, it sees no evidence of material deterioration in credit conditions.
"The primary driver of card losses is unemployment, which continues to be very benign as highlighted by weekly jobless claims. Furthermore, credit card Master Trust delinquency data shows normal seasonal improvements over the coming months indicating to us no significant change in overall industry credit," D.A. Davidson added.
Credit losses will likely increase modestly primarily due to credit seasoning of recent higher growth origination vintages, according to the firm.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: COF