UPDATE: Citigroup Raises PT to $41 on Discover Financial Services on Q3 Estimates
Citigroup reiterated its Neutral rating on Discover Financial Services (NYSE: DFS) and increased its price target from $37 to $41.
Citigroup noted, "We expect another good qtr from DFS and are raising our Q3 est by +7c to $1.12 (consensus at $1.03) to reflect better card credit. The key earnings swing factor will likely be the reserve release, which we peg at $63 mm vs $110 mm last qtr. … Q3 themes include 1) updated views on card loan/spend growth, 2) capital return, 3) traction on new mortgage strategy, 4) economics on the PayPal deal (see note), and 5) thoughts on M&A, including private label. DFS reports Thurs before market open, Sept 27th."
Discover Financial Services closed at $38.72 on Monday.
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