Capital One Financial Corporation (COF) Receives Rating Updates From RBC Capital and JPMorgan

Capital One Financial Corporation (NYSE:COF) is one of the best stocks to buy in 2026 for beginners. The stock received rating updates from RBC Capital and JPMorgan on January 12. RBC Capital lifted the price target on Capital One Financial Corporation (NYSE:COF) to $275 from $255 and maintained a Sector Perform rating on the shares.

The update came as part of a broader research note previewing Q4 for Consumer Finance names, with the firm telling investors that it anticipates stable fundamentals with consumers continually exhibiting resilience in a solid and potentially improving macro environment. The firm expects seasonal tailwinds to drive positive sequential loan growth in the quarter, and anticipates “modest improvements in core credit metrics”.

The same day, JPMorgan also raised the price target on Capital One Financial Corporation (NYSE:COF) to $256 from $237 and reiterated a Neutral rating, adjusting the ratings and price targets in the consumer finance group as part of a Q4 preview. The firm informed investors in a research note that the group is experiencing increased near-term volatility due to President Trump’s requirement that issuers limit interest rates on credit cards to 10% for one year. If implemented, this rate reduction “would fundamentally reshape the card industry, substantially reducing profitability for issuers and access to credit for consumers”, according to JPMorgan.

The firm views Trump’s post as a “high-severity, low-probability risk likely subject to significant legal challenges” and believes that a defensive position continues to be warranted in the consumer finance sector amid this backdrop.

Capital One Financial Corporation (NYSE:COF) is a financial holding company that provides financial products and services, with its operations divided into the following segments: Credit Card, Consumer Banking, and Commercial Banking.

While we acknowledge the potential of COF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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