Eagle Capital Management, LLC on Capital One Financial Corporation
Thesis
Capital One combines a scaled credit-card franchise with what Eagle describes as the only full-suite scaled digital bank in the U.S. The Discover acquisition adds substantial expected financial synergies and gives Capital One ownership of a payments network. With approximately 20% returns on equity, Eagle believes the business remains underappreciated and can generate both earnings growth and multiple expansion.
“we believe it is underappreciated and can drive both strong earnings growth and multiple expansion.”