UPDATE: Sterne Agee Lowers PT to $28 on Discover Financial Services

A report from Sterne Agee reiterates its Buy rating and lowers the price target from $30 to $28 on Discover (NYSE: DFS).

The report states, “While we think we can make the case that these four, especially CIT, CSE, and DFS, are facing a different set of dynamics than those of the typical large bank, all four are spread lenders, all four draw on deposits to some degree to fund their assets, all four are beholden to the vagaries of bank regulation. For us, the starting valuation inputs in establishing price targets for all four of these institutions are bank median multiples, and most investors we talk with make this comparison as well”.

DFS closed Friday at $24.13.