UPDATE: Citigroup Reiterates Neutral Rating, Lowers PT on Discover Financial Services

In a report published Friday, Citigroup reiterated its Neutral rating on Discover Financial Services DFS, but slightly lowered its price target from $44.00 to $43.00. Citigroup noted, “We have arguably entered a new phase for DFS shares as provisioning uncertainty has crept in and upside surprises are more limited. The stock is still reasonably priced at 8.8x our '13 est and mgt will ask for a more aggressive cap return in Q1, so it's difficult to see much downside though material gains now seem off the table unless we get a financial sector re-rating. The stock has also been very strong this year and is broadly owned. Lowering 2013/14 estimates by 10c on reserve build and target to $43 on lower est's.” Discover Financial Services closed on Thursday at $38.41.