Truist Raises PT on Capital One Financial (COF) Stock

Capital One Financial Corporation (NYSE:COF) is one of the Best Stocks to Buy According to Abrams Bison Investments. On July 28, Truist analyst Brian Foran lifted the price objective on the company’s stock to $260 from $225, while keeping a “Buy” rating after its Q2 2025 results. The firm is positive on Capital One Financial Corporation (NYSE:COF)’s higher-than-expected net interest margin outlook, a beat on favorable organic growth in Q2, and credit trends, added the analyst. The company has completed its acquisition of Discover and remains optimistic about the expanding set of opportunities to grow and create value as a combined company.

Capital One Financial Corporation (NYSE:COF)’s Q2 2025 net interest margin stood at 7.62%, 69 bps higher as compared to the prior quarter. The partial quarter impact of adding Discover rose NIM by ~40 bps. Moving forward, Capital One Financial Corporation (NYSE:COF) expects the full quarter benefit from the Discover acquisition to drive an additional 40 bps increase to NIM, all else being equal. The company’s common equity Tier 1 capital ratio ended Q2 2025 at 14%, ~40 bps higher than the prior quarter.

Oakmark Funds, advised by Harris Associates, released its Q2 2025 investor letter. Here is what the fund said:

“Capital One Financial Corporation (NYSE:COF) was the top contributor during the quarter. The U.S.-headquartered consumer finance company’s stock price rose as it completed its acquisition of Discover Financial in May and reported solid first-quarter 2025 earnings headlined by broadly improving credit metrics. Management has identified over $2 billion of expense and revenue synergies from the merger, which it expects to realize over the next 24 months. We continue to view Capital One as a disciplined, tech-forward and well-capitalized company and look forward to seeing how the Discover acquisition adds value.”

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Disclosure: None. This article is originally published at Insider Monkey.