BofA upgraded Capital One (COF) to Buy from Neutral with a price target of $235, up from $207. The firm thinks that Capital One is well positioned to benefit from the pending Discover (DFS) acquisition, which should unlock near-term synergies and provide meaningful strategic and operational upside longer term. The firm thinks the combined company could earn mid-teens-plus returns on equity, which could also lead to multiple expansion, the analyst added.
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