UPDATE: Jefferies Raises PT to $37 on Discover Financial Services

Jefferies increases its price target from $34 to $37 on Buy-rated Discover Financial Services

on solid Q1 print and positive outlook on Credit. Jefferies notes, "DFS reported EPS of $1.18, which was above our estimate of $0.99 and consensus of $0.94, mostly on a reserve release of $226M or roughly $0.27 per share. Loan growth of 3.6% y/y and spending volume growth of 7% y/y were also above expectations. We continue to remain positive on DFS shares and expect credit to be contained into 2013." DFS closed at $31.64 a share yesterday.