Street View: Focus on Capital One's spending outlook
COF•Analysts focus on expenses and spending trends
Capital One Financial (COF.N) reported a Q2 profit rise on Tuesday, helped by higher interest income from its credit card business.
Consumer health holding up
- BTIG ("buy," PT: $259) says key investor focus to remain on COF's expenses and its run-rate going forward.
- Piper Sandler ("overweight," PT: $254) says, "despite this quarter's credit-driven EPS beat, the trajectory of COF's core earnings power remains broadly in line with our expectations".
- Jefferies ("buy," PT: $300) says credit growth remains strong, supported by resilient customers and healthy spending trends.
- Citigroup ("buy," PT: $310) says, "market is really searching for an anchor rather than questioning the ROI, as dialing back expenses now feels counterintuitive to capturing arguably the largest opportunity-set ahead with Discover +Brex +legacy COF".
