Earlier today, Capital One Financial reported that there net charge off rate on credit cards reached 10.41% (up from 10.14% in December). In an effort to conduct damage control, an analyst rode in on the white horse to save the day.
Analysts at CLSA Securities upgraded Capital One to outperform from underperform, saying recent price drops have made the company's shares attractive.
"We are making a near-term trading call, that the stock could bounce back to what we believe will be a 12-month high $30s to low $40s trading range, if total credit losses peak in the first quarter of 2010, as we forecast," the CLSA analysts told clients Tuesday.
At 10:45 am, COF stock price is up roughly 4%.
Isn’t it comforting knowing that there is no manipulation in the equity market! I remain confident that CLSA Securities’ large clients will be out of their positions well above the close from this past Friday.
Hi Yo Analyst (we got away...)
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