UPDATE: Citigroup Raises Target to $33 on Discover Financial Services

Citigroup increases its price target on Neutral-rated Discover Financial Services

from $24 to $33 as strong credit outlook supports continued high ROS's for the card business. Citigroup says, "DFS's results highlight the strong ROE's available in the card business, boosted by charge offs that should remain relatively flat for the foreseeable future and well below normalized levels. While we don't see a specific positive catalyst in the results or expect one at their investor day tomorrow, we generally have a near-term upward bias for the shares on the back of our constructive overall card sector view." DFS closed at $31.64 a share on Wednesday.