Capital One (COF) Enjoys Multiple Analyst Upgrades Amid Litigation Clarity

Capital One Financial Corp (NYSE:COF) is one of the 8 best American stocks to buy and hold in 2026. On January 2, Keefe, Bruyette & Woods raised its target price on Capital One Financial Corp (NYSE:COF) stock from $260 to $290. Three days before that, Citi also raised its target price from $290 to $310. The $310 target price is the highest among all analysts, as per the 26 analyst ratings compiled by CNN.

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This bullish sentiment has been witnessed across some major funds as well. In its filing on January 1, Allspring Global Investments more than doubled its shareholding in the company, bringing it to a total of 496,245 shares. While the exact reason for increasing their holding wasn’t disclosed, it is likely the acquisition of Discover, carried out earlier in the year, which is expected to deliver $1.5 billion in synergies to the business.

There is also some clarity on the litigation front, as COF has simplified its proposed settlement regarding the allegedly misleading interest-rate advertisement for its Capital One 360 Savings accounts. The company has proposed that all of the $425 million be distributed as direct payments to the lawsuit participants. Previously, $125 million of this was suggested to be distributed as a future interest fund. The preliminary court approval is set for January 12, with a final approval likely in April this year.

Capital One Financial Corp (NYSE:COF) is the largest credit card issuer in the US by loan volume. It is a diversified financial holding company that was originally spun off from Signet Financial in 1994 and is now headquartered in McLean, Virginia.

While we acknowledge the risk and potential of COF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COF and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.