Capital One Financial: Attractive Risk-Reward, Strong Credit Discipline, and Underappreciated Earnings Power Support Buy Rating

In a report released today, Catherine Mealor from KBW maintained a Buy rating on Capital One Financial, with a price target of $290.00.

Catherine Mealor has given her Buy rating due to a combination of factors that highlight Capital One Financial’s attractive risk‑reward profile and earnings outlook. She sees meaningful upside in the shares relative to her target price, supported by solid core profitability, disciplined credit management, and a balance sheet she views as well positioned for the current rate and credit environment. In her view, the company’s diversified franchise and strong competitive position in card and consumer lending should support resilient revenue growth even amid macroeconomic uncertainty.

Catherine also emphasizes that management’s capital deployment strategy, including potential for buybacks and maintaining a healthy capital buffer, enhances shareholder value over time. She believes credit normalization is manageable for Capital One and that its reserve levels and underwriting standards provide a cushion against potential losses. Additionally, she expects operating leverage from technology investments and efficiency initiatives to support earnings growth, reinforcing her view that the current valuation does not fully reflect the company’s long‑term earnings power. Overall, these factors together underpin her favorable stance and Buy recommendation on the stock.

In another report released today, Citi also maintained a Buy rating on the stock with a $310.00 price target.