Investment analysts at Oppenheimer assumed coverage on shares of Discover Financial Services (NYSE: DFS) in a note issued to investors on Wednesday, TheFlyOnTheWall.com reports. The firm set an “outperform” rating and a $55.00 price target on the stock. Oppenheimer’s target price suggests a potential upside of 15.86% from the company’s current price.
The analysts wrote, “We are initiating coverage of Discover Financial Services (DFS) with an Outperform rating and a $55 price target. We believe that DFS’s growth is underappreciated by the market. In an environment where there hasn’t been much US credit card loan growth, the company has made the decision to methodically diversify. Starting with personal loans and private student loans, Discover has identified four product types to grow into. The common thread among all of these products is that they all offer similar risk-adjusted returns to credit cards and leverage the company’s analytical underwriting style. This diversification push will help it grow earnings and bridge the gap until there is faster credit card loan growth to leverage.”
Discover Financial Services (NYSE: DFS) traded up 0.11% on Wednesday, hitting $47.52. Discover Financial Services has a 52-week low of $32.01 and a 52-week high of $49.71. The stock’s 50-day moving average is currently $46.70. The company has a market cap of $23.305 billion and a price-to-earnings ratio of 10.38.
Other equities research analysts have also recently issued reports about the stock. Analysts at Sterne Agee raised their price target on shares of Discover Financial Services from $49.00 to $54.00 in a research note to investors on Tuesday. They now have a “buy” rating on the stock. Separately, analysts at Nomura reiterated a “buy” rating on shares of Discover Financial Services in a research note to investors on Wednesday, June 5th. They now have a $54.00 price target on the stock, up previously from $50.00. Finally, analysts at Susquehanna reiterated a “positive” rating on shares of Discover Financial Services in a research note to investors on Tuesday, May 21st. They now have a $58.00 price target on the stock.
Four investment analysts have rated the stock with a hold rating, nineteen have assigned a buy rating and one has assigned a strong buy rating to the company. The company presently has a consensus rating of “Buy” and a consensus price target of $49.64.
Discover Financial Services is a direct banking and payment services company. The Company is a bank holding company and a financial holding company.
