UPGRADE: Jefferies Increases PT on Discover Financial to $40
Jefferies reiterates a Buy rating on Discover Financial Services (NYSE: DFS) and increase its price target from $37 to $40.
Jefferies comments, “We continue to see upside in DFS shares as card yield compression is happening at a slower pace than anticipated by the Street, while the benefit to funding costs accelerates, driving a 9.3%+ NIM. Charge-offs and delinquencies continue to improve, with no turn in credit imminent. We continue think the story will work in a macro sensitive risk environment, with 3.5%+ loan growth coming from the US.”
DFS closed at $33.57 yesterday.
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