UPDATE: Credit Suisse Raises PT to $35 on Discover Financial Services

Credit Suisse raises its price target $5 to $35 on Neutral-rated Discover Financial Services

as credit improvement continues. Credit Suisse says, "Capital Plan Review disclosure could provide upside catalyst. We increase our 2012, 2013 and 2014 EPS estimates to $3.85, $3.90 and $4.20 (from $3.50, $3.70, and $4.00) to account for improved credit quality trends and increased share repurchase activity. We estimate that DFS will increase its repurchases in 2012 to $725MM and in 2013 to $1Bn. The Fed's Capital Plan Review decision will be given in March and we believe the company will provide some degree of disclosure on the results. Our total capital payout ratios are 47% in 2012 and 67% in 2013. Also, we believe Discover has a strong long-term strategy to leverage rewards and marketing spend." DFS closed at $30.49 a share yesterday.