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Barclays Reiterates an 'Overweight' on Discover Financial (DFS); Five Impressive Takeaways From Q2 Report

June 20, 2012 1:56 PM EDT Send to a Friend
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Price: $64.26 -0.29%

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    17 Buy, 5 Hold, 0 Sell

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    Up: 25 | Down: 18 | New: 23
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Barclays reiterates an 'Overweight' on Discover Financial (NYSE: DFS) price target of $39.00.

Analyst, Mark C. DeVries, said, "Top 5 takeaways from DFS's fiscal 2Q12 earnings: 1. Top-line beat on margin improvement: DFS's revenue continues to surprise to the upside; 2. Litigation expenses elevated, but core expenses and outlook are mostly in-line; 3. Credit quality remains a tailwind: In 2Q, net charge-offs were $17mm (9 bps) better than our estimate; 4. Loan growth solid: Card loans grew 3.7% y/y, above our 3.3% estimate. Student loan growth slowed on seasonal trends; 5. Buyback guidance in-line with expectations."

Barclays raises FY12 EPS estimate from $4.23 to $4.38 and FY13 from $3.88 to $4.00.

For an analyst ratings summary and ratings history on Discover Financial click here. For more ratings news on Discover Financial click here.

Shares of Discover Financial closed at $33.57 yesterday.




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