Nomura analyst Bill Carcache upgraded Capital One to Buy and increased its price target to $105 from $97. The analyst told investors most card issuers have reduced their sub-prime exposure since 2011, but Capital One has increased its subprime mix by 500 bps and is positioned to reap the rewards. Carcache expects Capital One's net income and earning to inflect in 2017 and 2018 with healthy high-single-digit card loan growth continuing, while the need to build reserves abates. The analyst adds, even with no Trump tax or regulatory policy tailwinds, Capital One should put up double-digit earnings growth in 2017 and 2018.