Nomura Securities Raises Price Target on Capital One (COF)

Nomura Securities reported on Friday that it has raised its price target on Capital One Financial Corp. (COF).

Following the company’s Q3 results, analyst Bill Carcache has increased his price target on Neutral-rated COF from $64 to $71. This new price target suggests that the stock will remain flat at its current price of $71.86.

“Excluding the impact of a $0.10 release and a $0.11 litigation charge, Capital One reported “core” 3Q13 EPS of $1.89 versus our estimate of $1.78 and consensus of $1.80,” the analyst said.

“Capital One is delivering solid earnings results in an environment that still poses significant challenges to asset growth. We look favorably on management’s decision to remain selective, as the company works its way through the runoff headwinds it faces before returning to a path of modest asset growth.”

Carcache added: “We’re raising our 2013 / 14 EPS estimates to reflect this quarter's beat and higher-than-expected revenue margin trajectory, partly offset by higher expenses related to the Beech Street acquisition. We’re also raising our PT to reflect 10x our revised 2014 EPS estimate. We remain Neutral on COF shares based on our view that they're fully valued at current levels. FY13E EPS from $7.32 to $7.39; FY14E EPS from $6.95 to $7.10.”

Capital One Financial shares were up 62 cents, or 0.86% during Friday morning trading. The stock is up 25% YTD.