Moshe Orenbuch, an analyst from TD Cowen, maintained the Buy rating on Capital One Financial. The associated price target remains the same with $290.00.
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Moshe Orenbuch has given his Buy rating due to a combination of factors tied to Capital One’s earnings quality, strategic positioning, and valuation. He notes that core fourth-quarter earnings modestly exceeded expectations, with stronger-than-forecast net interest income—especially in the consumer segment—supporting the top line, even as higher operating expenses offset much of the upside. Management’s commentary that credit trends are stabilizing after prior improvement, card losses came in slightly better than anticipated, and loan growth aligned with forecasts underpins confidence in the sustainability of earnings. In addition, Capital One repurchased more stock than expected, signaling balance sheet strength and disciplined capital deployment.
Orenbuch also emphasizes the strategic benefits of the Discover and Brex transactions. While acknowledging that the Brex acquisition will initially weigh on earnings per share, he highlights its potential to meaningfully enhance Capital One’s growth in small business cards, payments, and lending over time, without disrupting the integration of Discover or reducing planned share repurchases. He views the near-term softness in the Discover legacy card portfolio as temporary, expecting growth to reaccelerate once technology integration is complete and newly identified growth initiatives are executed. With updated 2026–2027 earnings forecasts and a price target derived from applying a 12x multiple to his 2027 estimate, he believes the shares offer attractive upside relative to current levels, supporting a Buy recommendation.
Orenbuch covers the Financial sector, focusing on stocks such as OneMain Holdings, SLM, and Capital One Financial. According to TipRanks, Orenbuch has an average return of 23.9% and a 69.46% success rate on recommended stocks.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $280.00 price target.