UPDATE: Credit Suisse Upgrades Discover Financial Services to Outperform on Credit Quality, Valuation

Credit Suisse upgraded Discover Financial Services

from Neutral to Outperform and raised the price target from $44.00 to $47.00. Credit Suisse noted, "We believe that Discover represents the best combination of strong operating fundamentals and valuation among the large card issuers. At present the shares sell under 9x our 2013 EPS estimates, and while the building of reserves limits near term EPS gains, we still see positive growth in EPS. Key points: (1) We believe DFS should have industry leading receivables and revenue growth in 2013-14. (2) The company is returning the vast majority of earnings. (3) DFS appears to be positioning the network to be a source of value to shareholders. And (4) valuation is the lowest of the major card issuers and most major banks." Discover Financial Services closed at $39.95 on Thursday.