Citi analyst Keith Horowitz has maintained their bullish stance on COF stock, giving a Buy rating on December 26.
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Keith Horowitz has given his Buy rating due to a combination of factors that highlight both earnings strength and capital return potential. He expects Capital One’s core profitability to rise meaningfully over the next few years, with earnings per share projected to climb as the integration with Discover progresses. Management is anticipated to deploy a sizable share repurchase program while still maintaining capital ratios comfortably above their long-term target, underscoring both balance sheet resilience and shareholder-friendly capital allocation. He also notes that the company’s renewed spending on strategic initiatives is critical to fully harnessing Discover’s capabilities and should, over time, enhance the earnings power of the combined franchise.
Furthermore, Horowitz sees room for results to exceed current market expectations, particularly through stronger net interest income driven by improved card yields and more favorable deposit costs. His credit outlook is more optimistic than the Street’s, supported by better-than-expected credit indicators and reassuring management commentary. While he recognizes that expenses will remain elevated in the near term due to integration and investment spending, he views these as necessary to unlock long-run value. With growing investor confidence reflected in positioning data and a higher target price derived from his valuation work, he concludes that the risk-reward profile justifies a Buy recommendation on Capital One shares.
In another report released on December 26, BTIG also maintained a Buy rating on the stock with a $308.00 price target.