Jefferies Assuming Coverage on Discover Financial Services

Jefferies & Co. is out with a research report on Discover Financial Services (NYSE: DFS) and is assuming coverage with a Buy rating and a $28 price target on shares.

In a note to clients, Jefferies & Co. writes, "DFS's early stage delinquencies and roll rates continue to improve, outpacing all other credit card trusts. Although we view the current early stage delinquencies and loss severities as unsustainable over the long term, we are projecting DFS to have the longest runway prior to credit normalization out of all major credit card lenders. Assuming coverage with a Buy rating and $28 PT."

Shares of DFS lost 68 cents yesterday to close at $22.26, a loss of 2.96%.