Analysts Reiterate Buy Rating For Capital One Financial (COF) Despite Disappointing Earnings

COF -0.01% COF-PK 0.00% COF-PL +0.82% COF-PN +0.18%

Capital One Financial Corp (NYSE:COF) is one of the 10 best financial stocks to buy for the long term. On February 04, Divid George of Robert W. Baird reaffirmed his Buy rating on Capital One Financial Corp (NYSE:COF), setting a target price of $270. A day prior to this, the company issued $1.5 billion worth of senior notes due 2032 and $1.5 billion worth of notes due 2037. The company now has $51 billion in debt on its balance sheet.

Other analysts continue to maintain a higher target price for the company. The optimism comes despite the company failing to beat Wall Street expectations on January 22. On the earnings call, Goldman Sachs’ Ryan Nash inquired about the investments the company was making in its own business. Richard Fairbank, the company’s CEO, pointed out the importance of the premium credit card space. He insisted that, since larger financial firms are investing even more heavily in this space, COF is doing so as well. This should help the company stave off competition in the future:

“We, of course, continue as we have for many years, to lean into the premium credit card space. And there is just so much opportunity in building a franchise of heavy spenders. I do want to comment there that it’s very clear that the biggest players in that space are leaning even harder into that. And they’re investing. And so we are doing so as well. I think the flip side of all that investment is it’s gonna be, you know, a higher hill for maybe other competitors to climb, but we’re climbing that hill and seeing a lot of traction.”

Capital One Financial Corp (NYSE:COF) is a financial services holding company that deals in credit cards, commercial, and consumer banking. It operates in the US, UK, and Canada.

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Disclosure: None. This article is originally published at Insider Monkey.