Truist Trims Capital One (COF) PT to $275 Following Brex Acquisition, Expense Surge

Capital One Financial Corporation (NYSE:COF) is one of the most undervalued large cap stocks to invest in now. On January 26, Truist Securities lowered its price target for Capital One to $275 from $290 with a Buy rating. The firm modestly reduced its estimates following the bank’s Q4 2025 earnings report, citing pressure from higher expenses and dilution associated with the newly announced $5.15 billion acquisition of Brex. According to Truist, the central debate for investors is now whether the company’s expenses have reached a peak.

On the same day, following Capital One’s Q4 2025 report, Barclays lowered its price target on the shares to $287 from $294 while maintaining an Overweight rating. The firm viewed the announced acquisition of Brex as a positive move to expand the company’s product suite and commercial card presence. Additionally, the firm noted that Capital One’s credit quality continues to improve and highlighted an acceleration in capital returns during the quarter.

Furthermore, on January 23, Deutsche Bank lowered its price target for Capital One Financial Corporation (NYSE:COF) to $256 from $263 and maintains a Hold rating. The firm noted that the company’s Q4 2025 report signals the start of an investment cycle that creates uncertainty regarding Capital One’s earnings upside potential.

Capital One Financial Corporation (NYSE:COF) operates as the financial services holding company for the 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.