Capital One's stock price fell 5.64% and hit a 20-day low amid broader market weakness, with the Nasdaq-100 down 0.17% and the S&P 500 down 0.12%.
The decline in Capital One's stock comes despite the announcement of its acquisition of Brex for $5.15 billion, structured as 50% cash and 50% stock. This strategic move aims to enhance Capital One's competitiveness in the credit card market and leverage Brex's innovative technology. However, analysts express concerns about the potential impact of Trump's proposed cap on credit card interest rates, which could restrict credit availability and negatively affect Capital One's business model.
The acquisition is expected to position Capital One favorably in the fintech sector, but the current market sentiment and regulatory challenges may overshadow the positive aspects of this deal.
Wall Street analysts forecast COF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for COF is 284.22 USD with a low forecast of 256.00 USD and a high forecast of 310.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
Wall Street analysts forecast COF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for COF is 284.22 USD with a low forecast of 256.00 USD and a high forecast of 310.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Buy
2 Hold
0 Sell
Strong Buy
Current: 220.180
Low
256.00
Averages
284.22
High
310.00
Current: 220.180
Low
256.00
Averages
284.22
High
310.00
Truist
Buy
downgrade
$290 -> $275
2026-01-26
New
Reason
Truist
Price Target
$290 -> $275
AI Analysis
2026-01-26
New
downgrade
Buy
Reason
Truist lowered the firm's price target on Capital One to $275 from $290 and keeps a Buy rating on the shares. The firm lowered estimates "modestly" following the bank's earnings report last week, noting the lowered estimates are mostly due to higher expenses and dilution from the Brex deal. From here, the key investor debate is clearly whether expenses have finally moved enough, the analyst tells investors in a research note.
Barclays
Overweight
maintain
$294 -> $287
2026-01-26
New
Reason
Barclays
Price Target
$294 -> $287
2026-01-26
New
maintain
Overweight
Reason
Barclays lowered the firm's price target on Capital One to $287 from $294 and keeps an Overweight rating on the shares following the Q4 report. The company announced the acquisition of Brex, indicating plans to build out its product suite further and lean into commercial cards, which is a positive, the analyst tells investors in a research note. The firm says Capital One's credit continues to improve and its capital returns accelerated in the quarter.
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BTIG
Buy
downgrade
$308 -> $270
2026-01-23
New
Reason
BTIG
Price Target
$308 -> $270
2026-01-23
New
downgrade
Buy
Reason
BTIG lowered the firm's price target on Capital One (COF) to $270 from $308 and keeps a Buy rating on the shares. The acquisition of Brex makes sense over the long term, though the firm is taking its own estimates down, primarily due to both the near-term dilution on the deal and the slowing of our share repurchases for the next two years, the analyst tells investors in a research note. BTIG adds that the acquisition has "negative implications" for American Express (AXP).
Deutsche Bank
Hold
downgrade
$263 -> $256
2026-01-23
New
Reason
Deutsche Bank
Price Target
$263 -> $256
2026-01-23
New
downgrade
Hold
Reason
Deutsche Bank lowered the firm's price target on Capital One to $256 from $263 and keeps a Hold rating on the shares. The firm says the Q4 report marks the beginning of an investment cycle that "clouds" Capital One's earnings upside outlook.
About COF
Capital One Financial Corporation is a diversified financial services holding company with banking and non-banking subsidiaries. The Company offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. It operates through three segments: Credit Card, Consumer Banking and Commercial Banking. The Credit Card segment consists of its domestic consumer and small business card lending, and international card businesses in the United Kingdom and Canada. The Consumer Banking segment consists of its deposit gathering and lending activities for consumers and small businesses, and national auto lending. The Commercial Banking segment consists of its lending, deposit gathering, capital markets and treasury management services to commercial real estate and commercial and industrial customers. Its principal operating subsidiary is Capital One, National Association, which offers banking products and financial services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
