On August 3, Capital One rose 3.3% in regular trading, trading at approximately $215.84/share, with turnover of $2.46 billion. The move was driven by UBS raising its price target on the stock to $280 from $275 while maintaining a Buy rating.
The UBS upgrade adds to a broad Wall Street consensus favoring Capital One. Citigroup, Rothschild & Co Redburn, Barclays, and HSBC have all recently maintained bullish ratings, with the FactSet analyst mean price target at $257.68. The current trading price remains well below the consensus target, suggesting analysts see significant upside potential.
The positive momentum also reflects lingering strength from Capital One's Q2 earnings disclosed in late July. Adjusted EPS came in at $5.81, beating the $4.77 consensus estimate by 21.8%, while revenue of $15.85 billion also exceeded expectations. Strong consumer credit quality drove the beat, with the company releasing over $700 million in loan loss reserves from its credit card business as net charge-off and delinquency rates declined both year-over-year and sequentially.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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