"We like COF's diversified lending platform and expect a card recovery as well as ongoing auto/CRE growth to offset mortgage run-off and drive net growth," Jefferies said about the Virginia-based diversified financial services holding company which has banking and non-banking subsidiaries.
Analysts noted Capital One Financial is well positioned for rising rates, and its capital ratios are "solid." However, they believe credit normalization is occurring and could weigh on growth in the near term.
Shares of Capital One Financial closed up 1.75% at $79.61 yesterday.
Separately, TheStreet Ratings team rates CAPITAL ONE FINANCIAL CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate CAPITAL ONE FINANCIAL CORP (COF) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."