10:50 AM EDT, 04/26/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target by $19 to $152, applying a forward P/E of 9.1x our 2025 EPS estimate, modestly below the peer average of 9.7x given continued credit deterioration. We lift our 2024 adjusted EPS estimate to $13.75 from $13.64 and raise 2025's to $16.66 from $16.32. COF reported Q1 2024 adj. EPS of $3.13 vs. $2.31, a $0.25 earnings miss. Net interest income rose 4% Y/Y as the bank's net interest margin improved by 9 bps to 6.69%. Weakness was identified in loan balances (+2%) as decelerating growth was identified for the seventh straight quarter. Still, signs of life were seen in auto loan originations of $7.5 billion, which jumped 21%. Although operating expenses (+2%) remained in check, COF leaned into customer acquisitions with 13% marketing growth. COF's CET1 ratio improved 60 bps to 13.1%, given minimal buybacks over the past year. We remain at Hold as net charge-offs of 3.33% (+112 bps) have yet to stabilize, and in Q1, were negatively impacted by smaller-than-expected tax refunds.