Capital One price target lowered to $280 from $294 at BofA

BofA analyst Mihir Bhatia lowered the firm’s price target on Capital One (COF) to $280 from $294 and keeps a Buy rating on the shares after the company reported Q4 earnings and announced the acquisition of Brex, which the firm believes “nicely complements” and expands Capital One’s current small business card offering, Spark. Since the Discover acquisition, some bullish investors have made the case that Capital One’s multiple could expand closer to that of American Express (AXP) as both companies operate a three-party network model, notes the analyst, who adds that “Cap One is starting to look more like Amex.” The firm notes it lowered its 2025/26 EPS forecasts to account for higher operating expenses.