Credit card issuer Discover Financial Services (
) saw its earnings estimate lowered on Monday by analysts at
The firm said it lowered its full-year 2010 estimate for DFS
from 40 cents, but noted that provisions should decline in 2010.
Barclays Capital reiterated its "Overweight" rating and $18 price
target on the stock, which would represent a more than 28% upside
to DFS' Friday closing price of $14.
Discover Financial shares were mostly flat in premarket trading
The Bottom Line
We have avoided shares of DFS since our early June 2008 coverage
began, when the stock was trading at $15.70. The company has a .57%
dividend yield, based on Friday's closing stock price of $14.00.
The stock has technical support in the $12 price area. If the
shares can firm up, we see overhead resistance around the $16 price
level. We would remain on the sidelines for now.
Discover Financial Services (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 out of 5 stars.
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, as well as a detailed explanation of
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