COF: Story Intact Following Uneventful Print (Ex-Reserve Release)

研报英文原文证据摘录

COF: Story Intact Following Uneventful Print (Ex-Reserve Release)

Payments, Processors, & IT Services

Consumer Finance - Card Issuers - Market Weight

CAPITAL ONE (COF) July 22, 2026

COF: Story Intact Following Uneventful Print (Ex-Reserve Rating:

Release) Outperform

Price:

$208.89

The Wolfe Byte Price Target:

2Q26 was broadly in-line on revenues & PPNR and beat Street EPS on lower $255

% Upside:credit costs. Despite lingering questions on expenses, we maintain our OP rating 22.1%

on broad strength across most KPIs (namely spend / fee revenues) and unchanged

View COF Model

earnings power post-DFS / Brex. View Comp Table

Company Information

52-Week Range $176 - $258

●2Q26 results were well above consensus on adjusted EPS, primarily driven by Market Cap. (MM) $127,036

a sizable reserve release within card after last quarter's conservatism (results Shares Out. (MM) 616.0

Avg. Value Traded (MM) $838.28

were much closer to in-line w/o the release). Marketing expenses again came SI% of Float 1.9%

in better vs. expectations, though we see a continued ramp from Brex and DFS Dividend Yield 1.5%

post-brownout. See pgs. 3-5 for further detail. ROTCE 11.19%

●Investor Feedback: Shares of COF settled flattish after market, with investor 270260

feedback remaining centered around the n-term expense trajectory, network 250240

synergy progression (particulary COF's outlook on the credit side), and its 230220

view of the post-integration earnings power. Given a relatively undemanding 210 200

190 valuation, we believe the results could be enough for shares in the near-term,

as underlying PPNR was largely in-line and COF's view of synergy progression 180170

and earnings power was unchanged.