Capital One price target raised to $151 from $135 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Capital One (COF) to $151 from $135 and keeps an Equal Weight rating on the shares as a new analyst assumed primary coverage. Following Q4 reporting, the firm is incrementally more bullish on prospects of a softer credit landing and identifies Ally and Discover (DFS) as two ways to play that theme. However, the credit cycle is not yet over, as net charge offs are set to rise though 2024, adds the analyst, who maintains an In-Line rating on the Consumer Finance industry.