With Capital One Financial down more than 20% in 2026, it’s time to buy the dip, according to JPMorgan. The bank upgraded its rating on the financial services company to overweight from neutral. It also cut its price target for the stock to $213, which still indicates a 10.6% gain from Wednesday’s close. Analyst Richard Shane said the stock’s fall has made sense amid macroeconomic uncertainty, but he thinks there’s little downside left unless new risks emerge. “Since the DFS merger,” referencing Capital One’s purchase of Discover Financial Services which was completed in May, “we have viewed COF as thematically intriguing but were waiting for a more attractive entry point from a valuation perspective; we believe now is a good time to get on board,” Shane wrote in a Thursday note. COF YTD mountain COF year-to-date chart. Still, the analyst cut his price target as he takes a more cautious view on the consumer, which now is grappling with higher energy prices in addition to above-target inflation and a murky labor market. However, Shane added that JPMorgan believes the company can weather a weaker consumer. “While the pace of credit improvement has moderated, we believe that the company remains well reserved, which should help limit the risk of additional reserve build even if macro conditions become more challenging,” he wrote.