Evercore ISI analyst John Pancari upgraded Capital One (COF) to Outperform from In Line with an unchanged price target of $200. The firm believes the stock’s valuation does not fully discount the company’s long-term upside to earnings and returns driven by the combined Capital One/Discover (DFS) franchise. A weaker U.S. consumer could pressure card credit and spend trends, but Capital One’s “idiosyncratic factors” provide upside earnings optionality in the face of potential credit and revenue headwinds, the analyst tells investors in a research note. Evercore assumes a Q2 deal close.
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