Analyst Donald Fandetti from Wells Fargo maintained a Buy rating on Capital One Financial (COF – Research Report) and increased the price target to $225.00 from $210.00.
Donald Fandetti has given his Buy rating due to a combination of factors that highlight Capital One Financial’s strong performance and positive outlook. The company has shown a continued decline in card delinquency rates and net charge-offs, which indicates improving credit conditions. This trend is expected to continue, leading to further reserve releases through 2025, providing a financial boost.
Additionally, the anticipated share buybacks following the Discover Financial Services merger are expected to create a technical tailwind for the stock. The merger itself is projected to result in multiple expansion and earnings accretion, enhancing the scarcity value of Capital One’s franchise. Despite a slight miss in GAAP EPS due to one-time costs, the core EPS estimates have been raised, reflecting better credit trends and justifying an increased target price of $225.
According to TipRanks, Fandetti is a 5-star analyst with an average return of 10.4% and a 61.32% success rate. Fandetti covers the Financial sector, focusing on stocks such as Synchrony Financial, American Express, and Capital One Financial.
In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $264.00 price target.