Zacks Investment Research upgraded shares of Capital One Financial Corp. (COF) from NEUTRAL to OUTPERFORM on July 11, 2013, with a target price of $71.00.
We are upgrading Capital One from Neutral to Outperform based on its improved capital deployment activities. The company's first-quarter earnings substantially surpassed the Zacks Consensus Estimate. Results benefited from decreased operating expenses, partially offset by a decline in top line. Moreover, strong profitability and capital ratios as well as improving asset quality were the positives for the quarter. Exposures to commercial real estate, weak demand for loans, and the impact of new financial regulations are expected to dent the company's financials. However, we anticipate continued synergies from its geographic diversification and recent acquisitions. Moreover, the resilience exhibited by almost all its businesses will continue to support financials.
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