Bank of America Reiterates Buy Rating, $47 PT on Discover Financial Services Following Investor Day

In a report published Wednesday, Bank of America analyst Kenneth Bruce reiterated his Buy rating and $47.00 price target on Discover Financial Services DFS. Bruce noted, “We came away from Discover's Investor Day incrementally bullish on its earnings power and potential to distribute capital to shareholders. DFS effectively raised its outlook with superior credit performance and improving funding costs continuing to fund a combination of growth investments, higher dividends and buybacks. DFS expects credit losses will normalize slowly and at the low-end of its prior guidance. Credit card loan growth is expected at the high-end of the range, which it raised. DFS highlighted initiatives to drive additional share gains, leverage its deep credit expertise to diversify its balance sheet and engage its network more fully. Challenges remain, in particular surrounding Pulse debit volumes, but we were encouraged that the favorable earnings backdrop should persist.” Discover Financial Services closed on Tuesday at $42.13.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorReiterationAnalyst RatingsBank of America
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!