Ladenburg Thalmann Credit Card Update (AXP, BAC, COF, DFS, JPM)

In a monthly credit card preview, Ladenburg Thalmann analysts wrote that "for card issuers that we cover, our analysis points to lower net charge-offs and delinquencies for all issuers." The firm said that it expects net charge-offs at American Express AXP to be 7.2%, which is down 30 bps from March. Ladenburg has a Neutral rating on AXP shares. They anticipate net charge-offs at Bank of America BAC to be 12.48%, or 6 bps lower than last month. The firm rates BAC a Buy. Capital One Financial's COF net charge offs are anticipated to fall 45 bps to 10.42%. Ladenburg rates COF shares Neutral. At Discover Financial Services DFS net charge-off estimates are for a decline of 17 bps month/month, to 8.34% due primarily to a 6% drop in 150+ day delinquencies. The analysts rate DFS a Sell. Ladenburg anticipates that NCOs at J.P. Morgan JPM will come down 36 bps to 9.15%. The firm rates JPM a Buy. The analysts wrote that "while card issuer managements have largely guided to better credit quality in the second quarter, we expect card stocks to react positively to further expected credit improvement."