JP Morgan Stays Bullish on Discover Financial Ahead of Earnings (DFS)


Shutterstock photo

Credit card issuer Discover Financial Services ( DFS ) on Monday received some continued bullish support from analysts at JP Morgan.

The firm reiterated its "Overweight" rating on DFS and lifted its price target from $36 to $36.50. That new target suggests a nearly 11% upside to the stock's Friday closing price of $32.99.

A JP Morgan analyst commented, "Following the release of May master trust data, we are previewing results and adjusting our estimates for Discover prior to the company's FY2Q12 earnings. We are raising estimates to reflect better credit results relative to our previous estimates. The company is scheduled to release earnings before the market opens on Tuesday, June 19. We are maintaining our Overweight rating and increasing our 2012 year-end price target to $36.50 (prev. $36) to reflect our revised estimates."

Discover shares were mostly flat in Monday morning trading.

The Bottom Line
Shares of Discover Financial Services ( DFS ) have a 1.21% dividend yield, based on Friday's closing stock price of $32.99. The stock has technical support in the $28-$30 price area. If the stock can firm up, we see overhead resistance around the all-time high levels of $34-$35 a share.

Discover Financial Services ( DFS ) is not recommended at this time, holding a 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 Nasdaq, Inc.

Created by

This article appears in: Investing , Stocks

More from

Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by