JPMorgan says Capital One Financial is down more than 20% in 2026, making now the time to buy. The bank raised its rating on the financial services company from neutral to overweight. The company also lowered its price target to $213, which still represents a 10.6% increase from Wednesday’s closing price. Analyst Richard Schoen said a decline in stocks makes sense given the macroeconomic uncertainty, but there is little room for declines unless new risks emerge. “Since the DFS merger,” Schoen said in a note Thursday, referring to Capital One’s acquisition of Discover Financial Services, which closed in May, “we have viewed COF as interesting thematically, but have been waiting for a more attractive entry point from a valuation perspective. We believe now is a good time to go for it.” COF YTD Mountain COF Year-to-date chart. Still, the analyst lowered his price target, taking a more cautious view on consumers facing higher-than-target inflation and an uncertain labor market, as well as rising energy prices. But Schoen added that he believes JPMorgan can weather the consumer downturn. “While the pace of credit improvement has slowed, we believe we still maintain sufficient reserves, which will help limit the risk of further reserve additions even if the macro environment becomes more challenging,” he said.
