On January 12, JPMorgan analyst Richard Shane increased the price target for Capital One Financial Corporation (NYSE:COF) from $237 to $256, maintaining a Neutral rating. This adjustment was part of a broader fourth-quarter preview for the consumer finance group.
JPMorgan noted elevated near-term volatility for card issuers following a proposal by U.S. President Donald Trump. On January 10, President Trump wrote in a post on Truth Social calling for a one-year cap on credit card interest rates at 10%, effective January 20, 2026.
"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," the post stated.
In its note, JPMorgan highlighted that such a policy, if enacted, would represent a structural disruption to the credit card industry. It would materially impact issuer profitability and restrict consumer access to credit.
However, JPMorgan analysts called the proposal a "high-severity, low-probability risk likely subject to significant legal challenges." The firm believes the sector is sensitive to regulatory intervention, warranting caution due to headline risk.
Also on January 12, RBC Capital raised its price target on Capital One Financial from $255 to $275, maintaining a Sector Perform rating. This revision was part of RBC's Q4 preview of covered consumer finance companies. The firm's analysts anticipate modest improvements in core credit metrics.
Capital One Financial Corporation is a McLean, Virginia-based diversified financial services holding company. It provides credit card lending, auto loans, and commercial lending.