Barclays says reports over the Department of Justice’s competitive concerns in the subprime card market shouldn’t derail Capital One’s (COF) proposed takeover of Discover (DFS). There could be a path to regulatory approval through divestiture, which Barclays estimates would result in only a modest reduction in earnings estimates, the analyst tells investors in a research note. The firm believes the upside from network ownership overtime outweighs the earnings reduction. It keeps an Overweight rating on Capital Ono with a $220 price target.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on COF:
- BTIG Turns Bullish on Capital One Stock (COF) Regardless of the Discover Financial Merger
- JPMorgan specialty finance analyst holds analyst/industry conference call
- Capital One upgraded to Buy from Neutral at BTIG
- CoreWeave initiated, Carvana upgraded: Wall Street’s top analyst calls
- Capital One Financial: Undervalued with Strong Growth Potential Amid Strategic Moves and Capital Surplus