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Research Alert: CFRA Maintains Buy Opinion On Shares Of Capital One Financial Corporation
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Research Alert: CFRA Maintains Buy Opinion On Shares Of Capital One Financial Corporation
Apr 22, 2026 10:33 AM

01:10 PM EDT, 04/22/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

After digesting Q1 earnings, we reduce our 12-month target price by $25 to $265, applying a forward P/E of 10.8x our 2027 EPS estimate, above the 10-year historical average of 8.7x to reflect COF's push into wealthier cohorts and dynamic operating model following the acquisition of Discover Financial. We reduce our 2026 adjusted EPS view to $19.87 from $21.22 and cut our 2027 EPS estimate to $24.46 from $25.68. We remain optimistic about the stock despite heightened geopolitical tensions. Strong employment and real wage growth (wages rising faster than inflation) are supporting healthy credit quality across both COF's credit card and auto loan portfolios. Management's commentary is also encouraging, suggesting that the net interest margin compression seen in Q1 is temporary. Looking ahead, the Discover acquisition should continue delivering structural improvements such as higher net interest margins, better operational efficiency, and stable credit quality. Shares yield 1.6%.

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