Summary:
- Capital One (COF, Financial) is set to become the largest credit card company in the US with its upcoming acquisition of Discover (DFS).
- Analysts predict a potential upside of 28.83% in COF's stock price.
- The estimated GF Value for COF could indicate a downside from current market levels.
Capital One (NYSE: COF) is on the brink of a transformative merger that could position it as the United States' largest credit card company. With crucial regulatory approvals in place for its $35 billion acquisition of Discover Financial Services (NYSE: DFS), the merger is anticipated to finalize by May 2025. This strategic move aims to broaden its reach, culminating in a robust credit card network encompassing over 300 million cardholders.
Wall Street Analysts Forecast
The optimism among Wall Street analysts is palpable, with 18 experts setting the one-year price target for Capital One Financial Corp (COF, Financial) at an average of $209.69. Forecasts range from a high of $251.00 to a low of $160.00, indicating an expected upside of 28.83% from the current share price of $162.77. Interested investors can delve into more detailed projections on the Capital One Financial Corp (COF) Forecast page.
Moreover, the collective voice of 22 brokerage firms currently rates Capital One Financial Corp (COF, Financial) at a 2.0, suggesting an "Outperform" status. This rating is part of a scale where 1 represents a Strong Buy and 5 a Sell, reinforcing a positive outlook for potential investors.
In contrast, the GF Value metric from GuruFocus offers a more cautious perspective. The estimated GF Value for COF is poised at $154.42, pointing to a potential downside of 5.13% from the present price of $162.77. This valuation reflects historical trading multiples and anticipated business performance. For a comprehensive understanding of these valuations, visit the Capital One Financial Corp (COF, Financial) Summary page.
