BofA Sees Brex Acquisition Complementing and Expanding Capital One's (COF) Spark Card Offerings

Capital One Financial Corporation (NYSE:COF) is one of the best inexpensive stocks to buy now. On January 23, Bank of America analyst Mihir Bhatia lowered the firm’s price target on Capital One to $280 from $294 with a Buy rating after the company reported Q4 2025 earnings and announced the acquisition of Brex, which the firm believes complements and expands Capital One’s current small business card offering, Spark.

Since the Discover acquisition, some bullish investors have made the case that Capital One’s multiple could expand closer to that of American Express as both companies operate a three-party network model. The firm noted it lowered its 2025/26 EPS forecasts to account for higher operating expenses.

In Q4 2025, Capital One Financial Corporation (NYSE:COF) reported net income of $2.1 billion. The company’s quarterly revenue totaled $15.5 billion, which was a 52.92% year-over-year increase, driven largely by the Discover acquisition, which helped push domestic card revenue up 58%. Excluding Discover, domestic card growth was 6.2%, while consumer banking revenue rose 36%.

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.

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