As previously reported, Oppenheimer analyst Dominick Gabriele downgraded Encore Capital to Perform from Outperform as he is sees improvement in delinquency formation from the vast majority of his credit card coverage post tax reform as well as on an industry level using the FDIC data. This data suggests that net charge-offs are likely to improve over the next 12 months as delinquency formation leads NCOs, he contends. The analyst thinks that although the level of gross charge-offs could grow with overall loan growth, the compounding effect of deteriorating credit quality in card portfolios seems less likely.