Oppenheimer Sticks to Its Hold Rating for Discover Financial Services (DFS)


In a report released yesterday, Dominick Gabriele from Oppenheimer maintained a Hold rating on Discover Financial Services (DFS). The company’s shares closed yesterday at $82.03, close to its 52-week high of $82.51.

Gabriele commented:

“After a strong YTD run of outperformance and our PT reached, we see limited upside to DFS shares given our EPS estimates that are now in line with the Street. Although DFS’s loan growth could speed back up and credit could be slightly better in 2019 vs. our expectations, we think recent outperformance reflects this. NIM could be under pressure compared to card peers in 2019, but expansion in 2020 could occur if the Fed cuts rates. Given card loans are variable, it’s likely the NIM benefit is less vs. a funding base against longer dated assets such as auto and mortgages loans. Historically rate cuts are followed by/during periods of deteriorating credit among FDIC commercial banks, where credit more than overtakes NIM expansion benefits.”

According to TipRanks.com, Gabriele is a 3-star analyst with an average return of 4.4% and a 68.8% success rate. Gabriele covers the Financial sector, focusing on stocks such as Credit Acceptance Corp, Santander Consumer USA, and Capital One Financial.

Currently, the analyst consensus on Discover Financial Services is a Moderate Buy with an average price target of $89, representing an 8.5% upside. In a report issued on April 29, BMO Capital also maintained a Hold rating on the stock with a $92 price target.

See today’s analyst top recommended stocks >>

The company has a one-year high of $82.51 and a one-year low of $54.36. Currently, Discover Financial Services has an average volume of 1.88M.

Based on the recent corporate insider activity of 71 insiders, corporate insider sentiment is negative on the stock.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

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.

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts