Analyst Donald Fandetti of Wells Fargo reiterated a Buy rating on Capital One Financial, retaining the price target of $225.00.
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Donald Fandetti has given his Buy rating due to a combination of factors including Capital One Financial’s strong core fundamentals and impressive second-quarter results. The company reported an adjusted EPS of $5.48, surpassing both the analyst’s estimate of $4.22 and the consensus estimate of $4.03, driven by better-than-expected provisions, operating expenses, and revenues. Additionally, the release of $400 million in reserves from domestic cards and an increase in adjusted net interest margin further highlight the company’s robust financial performance.
Moreover, the management’s focus on growth opportunities, particularly in the affluent segment, and the strategic move to transition all debit volumes to the Discover network by early 2026, indicate a strong future growth trajectory. The company’s excess capital position, with a CET1 ratio of 14%, and the potential for capital returns through share buybacks, add to the positive outlook. Despite some challenges, such as higher integration costs, the overall confidence in the combined entities’ earnings power supports the Buy rating.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $260.00 price target.