Capital One Financial Corporation (NYSE:COF) is among the best debt-free stocks to buy now. According to a January 12 update from The Fly, JPMorgan analyst Richard Shane raised Capital One Financial’s price target to $256 from $237 while maintaining a Neutral rating, as part of a broader Q4 preview across the consumer finance group.
While the target hike was positive, JPMorgan flagged elevated near-term volatility for card issuers following U.S. President Donald Trump’s proposal to cap credit card interest rates at 10% for one year.
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Calling for a 10%, one-year cap on credit card interest rates, President Trump wrote in a post on Truth Social on January 10,
Please be informed that we will no longer let the American Public be “ripped off” by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more, which festered unimpeded during the Sleepy Joe Biden Administration. AFFORDABILITY! Effective January 20, 2026, I, as President of the United States, am calling for a one-year cap on Credit Card Interest Rates of 10%. Coincidentally, the January 20th date will coincide with the one year anniversary of the historic and very successful Trump Administration.
In its note, JPMorgan highlighted that such a policy, if enacted, would represent a structural disruption to the credit card industry. It will not only materially impact issuer profitability but will also restrict consumer access to credit.
However, JPMorgan analysts called the proposal a “high-severity, low-probability risk likely subject to significant legal challenges.” This means that legal and implementation issues could limit its likelihood. Despite this, the firm believes that the headline risk warrants caution as the sector is sensitive to regulatory intervention.
On the same day, RBC Capital also raised its price target on the stock from $255 to $275, maintaining a Sector Perform rating. The revision was part of the firm’s Q4 preview of the consumer finance names under its coverage. Among their other observations, the firm’s analysts are anticipating “modest improvements in core credit metrics.”
Capital One Financial Corporation (NYSE:COF) is a McLean, Virginia-based diversified financial services holding company. The company provides a range of financial products and services, including credit card lending, auto loans, and commercial lending.
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Disclosure: None. This article is originally published at Insider Monkey.
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