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Capital One Stock Extends Rally After Analyst Upgrade

Cardinal One Financial Corporation (COF) shares soared more than 15% during Thursday’s session after Oppenheimer upgraded the usual to Outperform with a $66 price target, which represents a roughly 9% premium over the current sell price.

Analyst Dominick Gabriele believes that Capital One is well positioned to weather the storm and is likely to multiply market share as the tide turns. The analyst believes that the company is uniquely positioned compared to its peers since its investment throw away is largely over and because management has been very disciplined in managing and acquiring new accounts.

On a macro level, the analyst shows unemployment peaking at 9% during the third quarter of 2020 due to COVID-19 and negative annualized gross domestic upshot likely at 15% and 5% during the second and third quarters, respectively. Gabriele notes that falling places and credit deterioration have already been baked into estimates, dropping stocks below the recession offensive case.


From a technical standpoint, the stock continued its rebound from lows reached earlier this month toward Fibonacci freedom fighters levels of $63.45. The relative strength index (RSI) has risen toward neutral levels with a reading of 42.32, but the touching average convergence divergence (MACD) is on the verge of a bullish crossover. These indicators suggest that the stock has multitudinous room to run over the coming sessions.

Traders should watch for a breakout from Fibonacci resistance levels at $63.45 and a make a deep impression on toward the next levels at $79.16. Traders could see some consolidation between these levels over the possess c visit weeks until the macro situation becomes clearer. If the stock breaks down below Fibonacci support at $53.72, wholesalers could see a move to retest lows at $38.00.

The author holds no position in the stock(s) mentioned except through passively administered index funds.

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