Bank Profits Decline: The merger between Capital One and Discover Financial contributed to a 1% decrease in bank profits, totaling $69.9 billion in the second quarter.
Provision Expenses Increase: The Federal Deposit Insurance Corporation (FDIC) reported a significant rise in provision expenses by 33.7%, largely due to the merger, which accounted for an increase of $7.6 billion.
Positive Trends in Deposits and Loans: Despite the profit decline, domestic deposits rose for the fourth consecutive quarter, and loan growth accelerated, indicating some positive trends in the banking sector.
Asset Quality Concerns: While overall asset quality metrics remained stable, there were noted weaknesses in certain portfolios, particularly in commercial real estate and credit cards, with overdue rates surpassing pre-pandemic levels.
COF
$241.61+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 257.94 USD with a low forecast of 218.00 USD and a high forecast of 290.00 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 257.94 USD with a low forecast of 218.00 USD and a high forecast of 290.00 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.
14 Buy
4 Hold
0 Sell
Strong Buy
Current: 239.810
Low
218.00
Averages
257.94
High
290.00
Current: 239.810
Low
218.00
Averages
257.94
High
290.00
BofA
Mihir Bhatia
Buy
maintain
$248 -> $268
2025-12-16
New
Reason
BofA
Mihir Bhatia
Price Target
$248 -> $268
2025-12-16
New
maintain
Buy
Reason
BofA analyst Mihir Bhatia raised the firm's price target on Capital One to $268 from $248 and keeps a Buy rating on the shares following November credit metrics that the firm says were highlighted by "a solid credit update," but weaker than historical average card loan growth.
Morgan Stanley
Overweight
maintain
$272 -> $280
2025-12-16
New
Reason
Morgan Stanley
Price Target
$272 -> $280
2025-12-16
New
maintain
Overweight
Reason
Morgan Stanley raised the firm's price target on Capital One to $280 from $272 and keeps an Overweight rating on the shares. With lower delinquencies to drive lower defaults, a reacceleration in loan growth, and increased capital return, fundamentals remain supportive into 2026 for the consumer finance group, the analyst tells investors in a year-ahead note.
HSBC
Saul Martinez
Hold -> Buy
upgrade
$598 -> $633
2025-12-08
Reason
HSBC
Saul Martinez
Price Target
$598 -> $633
2025-12-08
upgrade
Hold -> Buy
Reason
HSBC analyst Saul Martinez upgraded MasterCard (MA) to Buy from Hold with a price target of $633, up from $598. Valuation and strong financial performance underpins the firm's more positive stance on MasterCard, as its attractive financial algorithm remains intact as services generate outsized growth, the analyst tells investors in a research note. The adverse volume and financial impacts of the Capital One (COF) debit migration should not prevent MasterCard from generating low-double-digit net revenue and mid-teen EPS growth in the coming years, HSBC argues.
Wolfe Research
Darrin Peller
Outperform
initiated
$270
2025-12-08
Reason
Wolfe Research
Darrin Peller
Price Target
$270
2025-12-08
initiated
Outperform
Reason
Wolfe Research analyst Darrin Peller assumed coverage of Capital One with an Outperform rating and $270 price target. The firm says the company's higher returns should be a supportive of a higher valuation. Further improvement in both Capital One's earnings power and returns in the low 20% range should support a modestly higher multiple versus what the company has historically garnered, 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.
