Trump Abandons EU Tariffs, Signaling Resurgence of 'TACO Trade'

Written by Emily J. Thompson, Senior Investment Analyst

COF-7.56%

GE-0.38%

INTC-17.03%

Source: Benzinga

Updated: 3d ago

0mins

Source: Benzinga

Tariff Policy Shift: Trump announced he will not impose a 10% tariff on the EU after a productive meeting with NATO Secretary General Rutte, indicating improved relations that are expected to boost transatlantic trade growth.
Futures Rise: Following this news, S&P 500 futures rose 0.30% to 6,931.00 points, while Nasdaq futures increased by 0.43% to 25,579.00 points, reflecting market optimism about future economic prospects.
Asian Market Surge: Japan's Nikkei 225 index surged 1.20% to 53,409.16 points, benefiting from strong performances of stocks with European market exposure, showcasing a positive global market reaction to U.S. policy changes.
Economic Data Focus: Investors are looking forward to upcoming economic reports, including GDP and initial jobless claims, which are expected to significantly impact market sentiment.

COF

$217.3+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

BTIG

Buy

downgrade

$308 -> $270

2026-01-23

New

Reason

BTIG

Price Target

$308 -> $270

AI Analysis

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.

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BofA

Mihir Bhatia

Buy

downgrade

$294 -> $280

2026-01-23

New

Reason

BofA

Mihir Bhatia

Price Target

$294 -> $280

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.

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.