Analyst Jeffrey Adelson from Morgan Stanley maintained a Buy rating on Capital One Financial and keeping the price target at $261.00.
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Jeffrey Adelson has given his Buy rating due to a combination of factors that highlight the strong performance and future potential of Capital One Financial. The company’s core results for the second quarter of 2025 exceeded expectations, particularly in terms of credit quality, which was bolstered by a healthy US consumer base. This strong credit performance was a significant contributor to the company’s earnings per share surpassing estimates by a notable margin.
Furthermore, management’s confidence in the earnings power and synergies following the Discover Financial Services merger suggests long-term growth opportunities. Despite ongoing reviews of capital targets, there is an anticipation of a substantial increase in stock buybacks later in the year. The company’s robust credit metrics, alongside management’s positive outlook on the US consumer and the integration process, support the Buy rating as they indicate potential for continued financial strength and shareholder value enhancement.
In another report released today, BTIG also maintained a Buy rating on the stock with a $264.00 price target.