Credit card issuer Discover Financial Services (
) 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
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
Discover shares were mostly flat in Monday morning trading.
The Bottom Line
Shares of Discover Financial Services (
) 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 (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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