Market Overview

UPDATE: Bank of America Merrill Lynch Reiterates Buy Rating, Raises PT on Discover Financial Services

Related DFS
Will The Other Credit Card Stocks Mirror The Q3 Success Of American Express?
Benzinga's Top Initiations

In a report published Friday, Bank of America Merrill Lynch reiterated its Buy rating on Discover Financial Services (NYSE: DFS), and raised its price target from $40.00 to $47.00.

BofA Merrill Lynch noted, “DFS reported strong core Q3'12 results, well above expectations, and provided equally strong commentary on its earnings call, bolstering the bullish sentiment that has surrounded DFS for some time now. The stock was up 7.3% on the day. What we find most encouraging is the earnings leverage DFS has to favorable credit. The current backdrop is good and will likely persist. That said, 2013 estimates are too low, in our view, and will continue to chase DFS shares higher. Given strong capital generation, we expect buybacks and dividend growth to drive DFS shares well into the mid-$40's. Credit will eventually turn, serving as a potent earnings drag. However, that day seems far enough in the future for DFS to move higher in the interim. Reiterate Buy rating.”

Discover Financial Services closed on Thursday at $39.71.

Latest Ratings for DFS

Oct 2016WedbushInitiates Coverage OnNeutral
Oct 2016Deutsche BankMaintainsBuy
Sep 2016BarclaysDowngradesOverweightEqual-Weight

View More Analyst Ratings for DFS
View the Latest Analyst Ratings

Posted-In: Bank of America Merrill LynchAnalyst Color Price Target Analyst Ratings


Related Articles (DFS)

View Comments and Join the Discussion!