Market Overview

UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on Discover Financial Services

Share:
Related DFS
Analysts Are Revising Estimates At These 3 Credit Card Stocks
Morgan Stanley: Favorable Credit Cycle Continues For Financials

In a report published Friday, Citigroup reiterated its Neutral rating on Discover Financial Services (NYSE: DFS), and raised its price target from $41.00 to $43.00.

Citigroup noted, “DFS reported EPS of $1.21, a beat vs. our $1.12 estimate and consensus $1.03. The beat was driven by a larger-than-expected reserve release in cards and better gain-on-sale from the new mortgage business, partially offset by a legal accrual related to the FDIC/CFPB settlement. The highlight of the quarter was the higher NIM at 9.44% (+13 bps q/q), which mgt expects to remain elevated at least through 2012. DFS is benefiting from a combination of 1) continued high ROA in the card business, 2) capital return and 3) new initiatives, including further leveraging their network. The recent PayPal deal is an example of scaling their network, though it remains to be seen if meaningful volumes materialize.”

Discover Financial Services closed on Thursday at $39.71.

Latest Ratings for DFS

DateFirmActionFromTo
Mar 2015OppenheimerMaintainsOutperform
Jan 2015Guggenheim SecuritiesDowngradesBuyNeutral
Jan 2015NomuraMaintainsBuy

View More Analyst Ratings for DFS
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Price Target Analyst Ratings

 

Related Articles (DFS)

Around the Web, We're Loving...