by Luzi Ann Santos | moomoo News
$Capital One Financial (COF.US)$ shares advanced Friday amid analysts' optimism on the outlook of the diversified bank that reported higher-than-expected revenue for the fourth quarter.
RBC raised its price target on Capital One Financial to $142 from $140, encouraged by management's confidence in the outlook, while keeping its rating on the stock to sector perform, MT Newswires reported. Analysts polled by Capital IQ have price targets ranging from $110 to $159, according to the report.
The company's press release showed fourth quarter revenue increased 1% to $9.51 billion. That's higher than the $9.48 billion analysts polled by Capital IQ were expecting, according to MT Newswires.
The bank boosted its provision for credit losses by $573 million to $2.9 billion, according to its press release. Net charge-offs, or the debt that the company is unlikely to recovery, reached $2.53 billion in the fourth quarter, or 3.2%, the company said. Delinquency rate was 3.7% for the quarter, up from 3.2% a year earlier, it said.
Wells Fargo analyst Donald Fandetti maintained a Buy rating on Capital One with a price target of $145.00, TipRanks reported Friday. The analyst noted that delinquencies are stabilizing, a positive sign for the company’s financial health, according to the news report.
Fandetti has an average return of 9.4% and a 63.64% success rate on recommended stocks, TipRanks said.
