Stifel Confident in Capital One Deal, MEMC a Sell at $3 Target, Rackspace at Outperform

Capital One Financial Corp.(NYSE:COF): Stifel Nicolaus believes that the Fed’s delay in deciding whether to approve Capital One’s proposed acquisition of ING Direct is “just political posturing,” and the firm expects the deal to be approved soon. The firm anticipates that Capital One will benefit from the macro recovery, and it maintains a Buy rating.

MEMC Electronic Materials Inc.(NYSE:WFR): Wunderlich believes MEMC Electronic’s Q4 results tomorrow are likely to miss one or more consensus estimate, making the firm see a significant amount of headline risk from the earnings report. Wunderlich keeps a Sell rating on the stock with a $3 price target.

Rackspace Hosting, Inc (NYSE:RAX): Cowen said Rackspace delivered solid Q4 results but is becoming concerned about its already extended valuation. The firm cited management’s guidance on expectations for reduced gross margins and for server adds to revert back to normal levels. Shares are Outperform rated.

Philip Morris International, Inc.(NYSE:PM): Argus believes that Philip Morris reported solid Q4 results. The firm raised its estimates for the company, citing its expectations for improving demand in Europe and continued growth in Asia. The firm reiterates a Buy rating on the stock.

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com