BTIG analyst Vincent Caintic has maintained their neutral stance on COF stock, giving a Hold rating yesterday.
Vincent Caintic has given his Hold rating due to a combination of factors surrounding the potential merger between Capital One and Discover. The recent news of the Department of Justice’s concerns about competition in the subprime sector has caused uncertainty, leading to a decline in the stock prices of both companies.
Caintic believes that while the merger is likely to proceed, the process may be delayed if the Department of Justice files an official complaint. Additionally, the substantial exposure of both companies to subprime portfolios raises questions about potential divestitures to satisfy regulatory concerns. These uncertainties contribute to the Hold rating, as the outcome of these developments could significantly impact Capital One’s financial position.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $195.00 price target.
COF’s price has also changed moderately for the past six months – from $145.080 to $165.260, which is a 13.91% increase.
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