UPDATE 1-Capital One profit view cut by Lehman Brothers

miércoles 28 de mayo de 2008 16:01 CEST

(Recasts, adds details)

May 28 (Reuters) - Capital One Financial Corp's (COF.N: Cotización) earnings forecast was lowered by Lehman Brothers Inc analyst Bruce Harting, who said the credit card and banking company has reduced its emphasis on growth to become a more "conservative capital generator."

Harting cut his forecast for profit per share to $1.38 from $1.53 for the second quarter, to $5.25 from $5.60 for 2008, and to $5.95 from $6.15 for 2009.

The analyst expects asset growth to be 1 percent in 2008 and 2 percent in 2009 for the fourth-largest U.S. issuer of MasterCard and Visa cards. He maintained his "equal weight" rating and a price target of $62 on the stock.

Harting expects McLean, Virginia-based Capital One to increase U.S. card receivables by about 1 percent this year, as it reduces its exposure to auto finance.

He also said asset growth will be slow in 2009 "since we anticipate that charge-offs will continue rising throughout most of 2009 and the company will maintain its conservative course during this period."

Analysts on average expect profit per share of $1.33 in the second quarter, $5.17 in 2008 and $5.89 in 2009, according to Reuters Estimates.

Shares of Capital One fell 40 cents at $48.13 in early morning trade on the New York Stock Exchange. (Reporting by Sweta Singh; Editing by Dinesh Nair)