Wells Fargo raised the firm’s price target on Capital One (COF) to $160 from $145 and keeps an Overweight rating on the shares following Discover (DFS) acquisition announcement. Generally, investors the firm has spoken with like the strategic merits of the deal, with increased scale and nice payments network optionality for Capital One. Wells notes some normal pushback on initial economics, but says that’s offset by a higher combined ROTCE.
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