Capital One (COF) Upside Persists Despite Regulatory Risks

Capital One Financial Corporation (NYSE:COF) ranks among the best financial stocks to buy according to billionaire Israel Englander. On January 12, JPMorgan analyst Richard Shane boosted Capital One Financial Corporation (NYSE:COF)’s price target to $256 from $237 while maintaining a Neutral rating on the company’s shares. The hike comes after President Trump’s proposal directing issuers to cap credit card interest rates to 10% for a year, adding to the industry’s near-term volatility.

If enacted, this rate drop, according to JPMorgan, “would fundamentally reshape the card industry, substantially reducing profitability for issuers and access to credit for consumers.” It considers the President’s decision to be a “high-severity, low-probability risk, likely subject to significant legal challenges.”

Moreover, BTIG raised its price target for Capital One Financial Corporation (NYSE:COF) to $308 from $264 back in late December, while keeping a Buy rating on the company’s shares. Capital One Financial Corporation (NYSE:COF) remains BTIG’s top pick for the first half of 2026, with the firm projecting a bull-case upside of $450, as investors remain wary of the Discover deal’s benefits.

Capital One Financial Corporation (NYSE:COF) operates as the financial services holding company for Capital One, National Association, which provides various financial products and services in the US, Canada, and the UK.

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.