Capital One’s (COF) Path Forward: Analyst Adjustments, Brex Integration, and Competitive Positioning

14 hours ago 1

Neha Gupta

Tue, February 3, 2026 astatine 6:55 AM CST 2 min read

Capital One Financial Corp. (NYSE:COF) is one of the champion inexpensive stocks to bargain for 2026. On January 27, Evercore ISI expert John Pancari lowered the terms people connected Capital One Financial Corp. (NYSE:COF) to $265 from $290 but kept an Outperform standing connected the stock. Pancari acted conscionable days aft Capital One announced connected January 22 that it had entered into a definitive statement to get fintech institution Brex for astir $5.15 cardinal successful a operation of banal and cash.

Capital One’s (COF) Path Forward: Analyst Adjustments, Brex Integration, and Competitive Positioning

According to Pancari, Evercore’s updated people reflects the firm’s presumption that Capital One’s expected net maturation has softened. Evercore reduced its 2026 EPS estimation to $18.87 from $19.26 and its 2027 EPS estimation to $22.83 from $23.32. These revisions presume the Brex woody closes successful the 3rd 4th of 2026, said Pancari. He and the squad astatine Evercore estimated the acquisition volition nutrient astir 5% tangible publication worth dilution and 1% halfway EPS dilution related to stock issuance.

The expert noted that near-term expenses are apt to emergence arsenic Brex is integrated into Capital One’s payments level and arsenic the institution continues investments successful the Discover Financial Services network. Pancari projected a full ratio ratio of astir 51.7% successful 2026 and astir 51.2% successful 2027, compared with astir 50% successful the second fractional of 2025.

But contempt these challenges, Pancari said helium is encouraged by management’s committedness to prudent superior absorption and accordant net powerfulness pursuing Capital One’s integration of Discover Financial Services. And, helium views the Brex acquisition arsenic a strategical determination that could assistance Capital One vie much efficaciously with American Express successful the payments space.

Capital One Financial Corp. (NYSE:COF) provides user and commercialized banking services. This includes recognition cards, car loans, savings accounts, and tiny concern lending, with operations crossed the United States.

While we admit the imaginable of COF arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 10 Stocks with Huge Growth Potential According to the Media and Goldman Sachs Semiconductor Stocks: Top 12 Picks.

Disclosure: None. This nonfiction is primitively published at Insider Monkey.