UPDATE: Goldman Sachs Raises PT to $46 on Discover Financial Services on Confident Outlook

Goldman Sachs reiterated its Conviction List Buy rating on Discover Financial Services DFS and raised its price target from $41 to $46. Goldman Sachs commented, "We reiterate our Conviction List Buy on DFS and raise our price target to $46 (+$5; $41 prior) on increased confidence in (1) DFS' ability to keep longer-term losses lower, (2) maintain its NIM through 2013, (3) monetize excess capital, and (4) expand its network. While higher earnings expectations have largely driven its recent stock performance (+61% ytd vs. SPX +16%), we see a path to higher earnings ($4.50+ in a normalized environment), leaving room for the stock to rise to our new price target." Discover Financial Services closed at $38.62 on Friday.