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(Reuters) - Capital One Financial Corp's (COF.N) shares fell as much 9 percent on Friday, after the credit card company's disappointing fourth-quarter results signaled it would not benefit as much as expected from its acquisitions last year.
Capital One bought online bank ING Direct and HSBC Holdings Plc's (HSBA.L) $30 billion U.S. credit card portfolio last year, boosting earnings.
But a weak fourth-quarter and a disappointing revenue outlook are prompting analysts to dial back their growth expectations for the company.
"It's just the magnitude of benefit from the acquisitions that's being questioned. Investors had gotten their expectations higher than the company could deliver in 2013," RBC Capital Markets analyst Jason Arnold said.
He cut his price target on the stock to $67 from $76.
Credit Suisse analyst Moshe Orenbuch said the company seemed to have significantly cut its revenue growth prospects just a few months after the deals closed.
"The company will likely be challenged to generate significant earnings growth in future periods, as any meaningful growth in card receivables will likely have to also result in an increase in the reserve," Orenbuch said in a note to clients.
Capital One shares were down 8 percent at $56.94 in heavy trading on Friday afternoon on the New York Stock Exchange.
Reporting by Jochelle Mendonca in Bangalore; Editing by Roshni Menon