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Investing.com - BofA Securities has raised its price target on Capital One Financial (NYSE:COF) to $245.00 from $244.00 while maintaining a Buy rating on the stock. The new target sits within the analyst range of $202-$290, with Capital One currently trading near $221, suggesting potential upside according to InvestingPro data.
Capital One recently reported its July operating metrics, which showed continued improvement in net charge-off rates within its combined card portfolio, though delinquencies experienced a slight increase.
The financial institution has transitioned to reporting metrics on a combined basis and did not provide separate performance data for the Discover card book in its latest report.
Card loan growth remained in the low single-digit range, which BofA Securities interprets as an indication that Capital One’s underwriting standards continue to be relatively stable and tight.
BofA Securities analyst Mihir Bhatia reiterated the firm’s Buy rating on Capital One, citing a favorable view of the long-term strategic benefits expected from the company’s Discover acquisition. Analysts tracked by InvestingPro anticipate sales growth this year, with the company expected to return to profitability.
In other recent news, Capital One Financial Corporation reported its second-quarter 2025 earnings, revealing adjusted earnings per share of $5.48. This figure surpassed both TD Cowen’s estimate of $3.85 and the consensus forecast of $4.03. However, the company’s revenue fell short of expectations, coming in at $12.5 billion compared to the forecasted $12.72 billion. Despite the revenue miss, analysts from BTIG reiterated a Buy rating on Capital One, with a price target of $264.00, noting the EPS beat included a one-time tax benefit of 25 cents per share. TD Cowen also raised its price target on the stock to $260.00 from $258.00, maintaining a Buy rating. In other developments, Capital One declared a quarterly dividend of $0.60 per common share, continuing its long-standing tradition of regular dividend payments. Additionally, Early Warning Services, LLC, the operator of payment platform Zelle and partly owned by Capital One, is facing a lawsuit from the New York Attorney General over allegations of enabling fraud. These developments reflect ongoing strategic and financial activities within Capital One and its associated entities.
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