UPDATE: Jefferies Downgrades Discover Financial Services to Hold, Reiterates $49 PT on Growth/Expansion Unlikelihood

In a report published Wednesday, Jefferies analyst Daniel Furtado downgraded the rating on Discover Financial Services

from Buy to Hold, but reiterated the $49.00 price target. In the report, Furtado noted, “Q1 results were solid at DFS, with in-line revenues and a beat to our provision and operating expense estimates. With investor sentiment remaining high and the stock approaching our PT we are downgrading to Hold as we see material earnings growth and multiple expansion unlikely in the current environment.” Discover Financial Services closed on Tuesday at $44.33.