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Investing.com - TD Cowen raised its price target on Capital One Financial (NYSE:COF) to $260.00 from $258.00 on Wednesday, while maintaining a Buy rating on the stock. The new target suggests potential upside from the current price of $221.36, with InvestingPro data showing the stock has already delivered an impressive 22.68% return year-to-date.
The financial services company reported second-quarter adjusted earnings per share of $5.48, exceeding TD Cowen’s estimate of $3.85 and the consensus forecast of $4.03. This strong performance aligns with InvestingPro data showing five analysts have recently revised their earnings estimates upward, with FY2025 EPS projected at $23.20.
TD Cowen noted that Capital One continues to maintain a constructive outlook on consumer health and credit quality, while achieving solid growth in its legacy Capital One card portfolio.
The firm highlighted that Capital One is pursuing opportunities in its card business, with plans to extend these strategies to the Discover card portfolio following their transaction, while also growing its auto lending business.
Following the earnings report, TD Cowen adjusted its earnings per share estimates for Capital One to $17.21 for 2025, $20.80 for 2026, and $24.37 for 2027, with the new price target representing 13 times the firm’s 2026 EPS estimate.
In other recent news, Capital One Financial reported its second-quarter 2025 earnings results, which significantly exceeded analyst expectations. The company achieved an adjusted earnings per share (EPS) of $5.48, surpassing the forecasted $4.03. This performance included a one-time tax benefit of 25 cents per share. However, the revenue of 12.5 billion dollars fell short of the anticipated 12.72 billion dollars. Despite this, Capital One’s stock saw a positive reaction, partly due to investor optimism about its recent acquisition of Discover. BTIG analyst Vincent Caintic reiterated a Buy rating on Capital One, maintaining a price target of $264.00. The analyst’s confidence reflects the strong EPS results, notwithstanding the higher-than-expected credit loss provisions. These developments highlight the company’s strategic initiatives and financial performance in the recent quarter.
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