Discover Financial’s Target, Estimates Boosted by Two Analysts (DFS)

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Credit card issuer Discover Financial Services ( DFS ) on Wednesday caught some bullish commentary from analysts at two major Wall Street firms.

Morgan Stanley reiterated its "Equal-weight" rating and DFS and lifted its price target to $39. That new target suggests a 16% upside to the stock's Tuesday closing price of $33.57. The firm also boosted its earnings estimates for the company, citing better credit trends and the possibility for more share buybacks.

Meanwhile, Jefferies & Co. maintained its "Buy" rating on DFS while raising its price target to $40, implying a 19% upside. The analyst also lifted its earnings estimates for the company, noting slower recent card yield compression.


Discover shares were mostly flat in premarket trading Wednesday.

The Bottom Line
Shares of Discover Financial Services ( DFS ) have a 1.19% dividend yield, based on last night's closing stock price of $33.57. The stock has technical support in the $30 price area. The stock is trading near the all-time high range of $34-$35 a share.

Discover Financial Services ( DFS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: DFS

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