Oppenheimer Keeps a Buy Rating on Discover Financial Services (DFS)


Oppenheimer analyst Dominick Gabriele maintained a Buy rating on Discover Financial Services (NYSE: DFS) today and set a price target of $81. The company’s shares closed yesterday at $73.22.

Gabriele commented:

“DFS reported EPS of $2.05 vs. consensus’ $2.06. There was ~$0.02 of tax one-timers putting “core” at $2.07. Slightly better PPE and credit in-line led the slightly better results. With improving PPE and delinquency formation stabilizing we see a scenario- leading upside vs. our/Street estimates as reserve builds could be a function of loan growth alone over the coming few quarters. Personal loans did have a NCO hiccup as detailed in the bullet below. DFS continues to show steady earnings growth with underlying fundamentals improving both in PPE and credit alike. Efficiency continue to improve as DFS account acquisition costs improve. This, as well as higher network volume, continues to demonstrate DFS’ brand resonating with new and existing card members. Maintain Outperform.”

According to TipRanks.com, Gabriele is a 1-star analyst with an average return of -1.0% and a 25.0% success rate. Gabriele covers the Financial sector, focusing on stocks such as Capital One Financial, Synchrony Financial, and American Express.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Discover Financial Services with a $86.75 average price target.

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The company has a one-year high of $81.93 and a one-year low of $63.31. Currently, Discover Financial Services has an average volume of 1.84M.

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Discover Financial Services is a holding company, which engages in the provision of direct banking and payment services. It operates through the Direct Banking and Payment Services segments.

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