Capital One Financial Corporation (COF, Financial) announced its first-quarter earnings, revealing a revenue of $10 billion, slightly below the anticipated $10.05 billion. Despite the revenue miss, the firm is advancing its strategic plans with the regulatory go-ahead for its acquisition of Discover. This transaction, set to finalize on May 18th, aims to establish a dominant position in the consumer banking and payments sector.
Richard D. Fairbank, Capital One's founder and CEO, emphasized the transformative potential of this merger. By combining forces, Capital One and Discover aspire to forge a robust platform with enhanced digital capabilities and technology. The merger is seen as a pivotal move to broaden their customer base and deliver greater value to both merchants and consumers.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Capital One Financial Corp (COF, Financial) is $210.02 with a high estimate of $251.00 and a low estimate of $160.00. The average target implies an upside of 23.40% from the current price of $170.20. More detailed estimate data can be found on the Capital One Financial Corp (COF) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Capital One Financial Corp's (COF, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Capital One Financial Corp (COF, Financial) in one year is $154.42, suggesting a downside of 9.27% from the current price of $170.2. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Capital One Financial Corp (COF) Summary page.
