Capital One Financial Corporation (COF) is a Buy at UBS Despite Cash Flow Growth Concerns

Capital One Financial Corporation (NYSE:COF) is an affordable blue-chip stock to buy. On November 21, BTIG analyst Vincent Caintic reiterated a Buy rating on Capital One Financial Corporation (NYSE:COF) and assigned a price target of $264. A day earlier, on November 20, analysts at UBS reiterated a Buy rating on the stock with a $270 price target.

The research firm remains optimistic about the company’s prospects despite its HOLT framework analysis indicating no improvement to the company’s cash flow return following the Discover Financial Services acquisition. The HOLT analysis, which factored in revenue synergies and recession scenarios, points to a share price of $260 in the discounted cash flow model.

The buy stance also comes on the company delivering strong third-quarter results, with adjusted earnings per share of $5.95, better than the $4.38 a share expected. Revenue in the quarter totaled $15.36 compared to $15.08 expected. In addition, the company announced a $0.80 dividend payable on December 1.

Capital One Financial Corporation (NYSE:COF) is a diversified financial services company primarily focused on consumer lending and deposits. It offers a wide range of products, including credit cards, auto loans, and other motor vehicle financing, as well as commercial and small-business banking services. The company also provides banking services and investment products.

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