Should investors adjust their portfolios following the rate cut?

Written by Emily J. Thompson, Senior Investment Analyst

COF-5.25%

Updated: Sep 19 2024

0mins

COF

$222.72+Infinity%1D

Analyst Views on COF

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

16 Buy

2 Hold

0 Sell

Strong Buy

Current: 235.070

Low

256.00

Averages

284.22

High

310.00

Current: 235.070

Low

256.00

Averages

284.22

High

310.00

BofA

Mihir Bhatia

Buy

downgrade

$294 -> $280

2026-01-23

New

Reason

BofA

Mihir Bhatia

Price Target

$294 -> $280

AI Analysis

2026-01-23

New

downgrade

Buy

Reason

BofA analyst Mihir Bhatia lowered the firm's price target on Capital One (COF) to $280 from $294 and keeps a Buy rating on the shares after the company reported Q4 earnings and announced the acquisition of Brex, which the firm believes "nicely complements" and expands Capital One's current small business card offering, Spark. Since the Discover acquisition, some bullish investors have made the case that Capital One's multiple could expand closer to that of American Express (AXP) as both companies operate a three-party network model, notes the analyst, who adds that "Cap One is starting to look more like Amex." The firm notes it lowered its 2025/26 EPS forecasts to account for higher operating expenses.

Wells Fargo

Overweight

maintain

$280

2026-01-22

New

Reason

Wells Fargo

Price Target

$280

2026-01-22

New

maintain

Overweight

Reason

Wells Fargo keeps an Overweight rating and $280 price target on Capital One after its Q4 results and Brex deal. The management's tone on the consumer remains constructive, and the firm is also positive on the strategic merit of the Brex acquisition as it will boost Capital One's corporate and small-enterprise card business and capabilities as it has many notable tech companies as existing customers, the analyst tells investors in a research note.

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Morgan Stanley

NULL -> Overweight

maintain

$280 -> $300

2026-01-20

New

Reason

Morgan Stanley

Price Target

$280 -> $300

2026-01-20

New

maintain

NULL -> Overweight

Reason

Morgan Stanley raised the firm's price target on Capital One to $300 from $280 and keeps an Overweight rating on the shares as part of the firm's Q4 preview note on its consumer finance coverage.

BofA

Buy

maintain

$268 -> $294

2026-01-09

Reason

BofA

Price Target

$268 -> $294

2026-01-09

maintain

Buy

Reason

BofA raised the firm's price target on Capital One to $294 from $268 and keeps a Buy rating on the shares. The firm raised targets for a trio of Consumer Finance names ahead of Q4 reporting season, as it applies higher valuation multiples, reflecting better consumer finance trends in the near term. Sentiment on the pure-play card issuers has strengthened considerably and "vibes are high" coming into the Q4 prints, the analyst tells investors in a preview for the group.

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.