HSBC analyst Saul Martinez upgraded Capital One Financial (NYSE: COF) from Hold to Buy with a price target of $229.00 (from $226.00).

The analyst comments: “Capital One shares are down 17% YTD, reflecting macroeconomic and policy uncertainty and a lack of clarity around the post-Discover path to increased earnings power. We think that caution is now more than reflected in the share price. With the bulk of Discover technology conversions weighted to later 2026–2027, we see a clearer runway to accelerating profitability as integration milestones are hit—particularly as the USD1.5bn of expected cost savings are largely realised after most integrations are finalized in 2027. We also expect loan growth to improve as Discover’s book transitions to Capital One’s origination platform (by end-Q3 2026). Our forecasts point to a step-up in earnings momentum in 2027e and 2028e, supported by healthy credit and meaningful capital returns. Our USD229 target price implies c14% upside and represents 9.8x 2027e earnings, not requiring a network-driven multiple re-rating.”

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Shares of Capital One Financial closed at $201.52 yesterday.