Bruce Harting, managing director of Barclays Capital, was named the top consumer finance analyst by Institutional Investors’2010 All-America Research Team survey Wednesday. He shared his sector outlook and best plays.
“We differentiate between lending and spending: Spending for [major credit card] companies is coming back between 10 to 15 percent year-over-year, which is a pretty good number given what’s going on in the economy,” Harting told CNBC.
“Lending is not happening, however,” he continued.
Harting said he looks for credit improvement and declining credit losses.
“We think we’re at a good point in the cycle where 6 to 12 month in a row, we’ve seen declining losses,” he said.
Harting Has “Buy” Ratings On:
Master Card $260 Price Target
Capital One $50 Price Target
Discover Financial $20 Price Target
American Express $50 Price Target
Visa $100 Price Target
Scorecard—What He Said:
- Harting's Previous Appearance on CNBC (Mar. 10, 2010)
Consumer Credit—More Market Views:
- Cramer: DOJ or Not, American Express Is a Buy
- Cash or Credit? More Consumers Turn to Debit Cards
- Visa Won't Be Hurt by Reform—'Outperform' Maintained
CNBC Data Pages:
Harting has investment banking clients who own shares of DFS and AXP.