BofA analyst Mihir Bhatia raised the firm’s price target on Capital One (COF) to $233 from $223 and keeps a Buy rating on the shares following the completion of the acquisition of Discover Financial (DFS) on Monday. The strategic optionality around the closed loop Discover network could materially enhance Capital One’s offering in the deposit, bank and card franchises, says the analyst. The firm also thinks credit metrics are trending in the right direction and expense synergies should be “readily achievable,” the analyst added.
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