JPMorgan raised the firm’s price target on Discover (DFS) to $150 from $135 and keeps a Neutral rating on the shares. The firm says market outcomes for consumer and specialty finance in 2025 will likely be determined by how far the Trump administration can go in implementing its policy objectives. The stocks already appear to be incorporating many of the more likely outcomes into valuations, with the sector factoring significant regulatory relief, less restrictive capital requirements, and higher capital returns, the analyst tells investors in a research note. JPMorgan believes this limits upside with risk/rewards “skewing unfavorably as premium valuations may constrain returns and downside scenarios could be exacerbated should events fail to unfold as expected.”
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Read More on DFS:
- Capital One downgraded to Neutral at BofA following Trump rally
- Discover Financial Faces Compliance and Reporting Challenges
- Discover receives NYSE notice over filing of FOrm 10-Q
- Discover Financial Services Reports Improved Credit Card Metrics
- Discover put volume heavy and directionally bearish
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
