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Morgan Stanley's Views on Discover Financial Services are Reinforced by Investor Day

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In a report published Friday, Morgan Stanley analyst Betsy L. Graseck reiterated an Overweight rating and $66.00 price target on Discover Financial Services (NYSE: DFS).

In the report, Morgan Stanley noted, “DFS has been actively increasing the duration of liabilities to be more asset sensitive (extended effective duration of funding by 3 years in 2013). As interest charge-offs remain low, higher APR balances attrite slower, and deposit costs continue to decline, we expect NIM remains relatively steady at 9.83% in 2014 vs. 9.81% in 4Q13, and declines to 9.73% in 2015 as the benefit from lower funding costs fades and loans mix shift toward lower yielding non-card loans.”

Discover Financial Services closed on Thursday at $56.48.

Posted-In: Betsy L. Graseck Morgan StanleyAnalyst Color Reiteration Analyst Ratings

 

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