Update shared on31 Jul 2025
Fair value Increased 5.89%Analysts have raised Capital One Financial’s price target to $250.70, citing improving credit quality, earnings accretion from the Discover acquisition, and the potential for transformative growth, driving a notable upward revision in fair value.
Analyst Commentary
- Bullish analysts cite improving consumer credit metrics, with lower delinquencies and charge-offs, supporting optimism for Capital One’s near-term fundamentals.
- Multiple upward price target revisions are attributed to the successful completion of the Discover acquisition, which positions Capital One as a rare vertically integrated payments company and opens potential for re-rating.
- Analysts expect significant earnings accretion and capital return opportunities from the merger, modeling as much as 20% EPS upside for coming years.
- Strategic potential to modernize the Discover Network and issue Capital One cards over that network is seen as a transformative opportunity for long-term business and earnings growth.
- Macro environment described as more stable and less volatile, and reduced downside risk scenarios (such as tariff shocks), provide further support for a constructive equity outlook.
What's in the News
- Net charge-offs for Q2 2025 rose to $3,060 million from $2,644 million a year earlier.
- The company will redeem all outstanding Series P 6.125% Preferred Stock and corresponding depositary shares at $1,000 per share plus accrued dividends on June 30, 2025.
- Repurchased 737,124 shares (0.19%) for $149.18 million in Q1 2025; totaling 8,525,734 shares (2.23%) repurchased for $1,112.77 million under the ongoing buyback program.
Valuation Changes
Summary of Valuation Changes for Capital One Financial
- The Consensus Analyst Price Target has risen from $236.76 to $250.70.
- The Future P/E for Capital One Financial has significantly risen from 6.91x to 20.56x.
- The Net Profit Margin for Capital One Financial has significantly fallen from 25.56% to 18.27%.
Disclaimer
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