Overview

• Hightower’s Stephanie Link said she recently bought Capital One, calling the Discover purchase a game changer and the shares very cheap at about 14 times forward estimates.
• Link projected earnings power around $26 per share and pointed to excess capital that could support shareholder returns.
• Investor commentary said controlling the Discover network may reduce dependence on Visa and Mastercard and raise fee-based revenue.
• Analysts highlighted potential data advantages from combining Discover’s transaction information with Capital One’s analytics for targeted cross-selling.
• CNBC’s Jim Cramer urged investors to buy after what he called an overreaction in the stock, praising CEO Richard Fairbank’s lending track record.