BUZZ-Street View: Capital One Financial to see favourable growth trends ahead
** Consumer lender Capital One Financial COF.N reported a 60% rise in fourth-quarter profit on Tuesday, helped by higher income from interests
IMPROVED CREDIT OUTLOOK AND CARD DELINQUENCIES
** RBC ("sector perform," PT: $200) says the outlook for standalone COF is stable; expects to see higher loan balances
** Barclays ("overweight," PT: $220) says Q4 reaffirmed its view that credit normalization has concluded; sees improving trends in domestic card delinquencies
** BofA Global Research ("neutral," PO: $200) says early indicators suggest COF's delinquency and net charge-offs are becoming more constructive
** Adds, "the more optimistic macro outlook and resilient consumer balance sheets should drive solid EPS growth"
** Morningstar (fair value: $170 ) says COF has been a major beneficiary of diminished concerns surrounding credit quality and expectations for a more favorable regulatory environment
** Adds, "while credit card net charge-offs are modestly above normal levels, there are no longer signs of ongoing deterioration"
(Reporting by Joel Jose in Bengaluru)
((joeljose@thomsonreuters.com))
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