BUZZ-Street View: Capital One's strong earnings show resilient consumer spending

Reuters
04-23
BUZZ-Street View: Capital One's strong earnings show resilient consumer spending

** Capital One Financial COF.N reported a rise in first-quarter profit on Tuesday, helped by a higher income from interest payments on its credit card debt

** Shares of the consumer lender up 3.1% at $175.47 in premarket trading

** Last week, U.S. banking regulators approved Capital One's $35.3 bln purchase of Discover Financial Services DFS.N

STRONG QUARTER, STABLE TRENDS

** Jefferies ("buy", PT: $200) says COFwell-positioned for growth in both auto and card segments

** Truist ("buy", PT: $215) says key positive was general commentary on the health of consumer spend trends and credit outlook

** TD Cowen ("hold," PT: $180) says co should generate strong card loan growth and build on its transactor business

** RBC ("sector perform," PT: $190) views Q1 as a solid quarter for co, with improvement in year-over-year asset quality metrics

** J.P. Morgan ("neutral," PT: $183) says card spending was stable in Q1, but management notes uptick in recent weeks, driven by Easter holiday

(Reporting by Prakhar Srivastava in Bengaluru)

((Prakhar.srivastava2@thomsonreuters.com))

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