Oppenheimer Maintains Perform on Capital One Financial

Oppenheimer is out with its report today on Capital One Financial COF, maintaining Perform. In a note to clients, Oppenheimer writes, "Although we like the business model and believe that COF has a valuable franchise, revenue and pre-provision earnings comparisons will be very difficult for the next several quarters, and we fear that this is likely to weigh on the stock. Comparisons will be difficult because the company (like other major card issuers) was proactive in re-pricing its products upward as the CARD Act was making its way through Congress. While on earnings conference calls, management has been very candid about how difficult comparisons will be, we fear that bad news is always incorporated twice into a stock—once, when 'everyone figures it out' and once when it is actually reported. In addition, we view the stock as fairly valued." Shares of COF closed Thursday at $49.00, up 2.36% from Wednesday's close.