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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Capital One Financial Corporation
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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Capital One Financial Corporation
Jul 23, 2025 11:15 AM

01:50 PM EDT, 07/23/2025 (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:

We increase our 12-month target price by $50 to $280, applying a forward P/E of 14.0x our 2026 EPS, above the 10-year historic average of 8.6x to reflect COF's push into wealthier cohorts and dynamic operating model following the acquisition of Discover Financial. We increase our 2025 adjusted EPS view to $17.43 from $15.91 and increase 2026's to $20.06 from $18.86. We have significantly raised our revenue estimates to incorporate the acquisition, projecting $52.9 billion for 2025 and $63.4 billion for 2026. COF delivered a strong quarter and successfully completed the Discover acquisition, positioning the company well to capitalize on expense synergies and enhanced scale within the Discover network. With the acquisition now finalized, a robust CET1 ratio of 14.0% (required minimum CET1 ratio is 10.0% and will drop to just 9.0% following a strong showing in this year's stress test), and favorable credit trends, we believe COF is well positioned to accelerate share repurchases over the coming year.

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