Wedbush Upgrades Discover Financial (DFS) to Outperform

Wedbush upgraded Discover Financial (NYSE: DFS) from Neutral to Outperform with a price target of $78.00 (from $72.00).

Analyst Henry Coffey Jr. commented, "The biggest driver of our rating change to OUTPERFORM are the number of developments that could break this company’s way—the “known unknowns.” This includes the following: 1) DFS is the most “interest sensitive” of the three card companies we follow (most credit card loans have variable rates). 2) It is expected that a Republican administration will reengage the private sector in the government-sponsored student lending equation with the revitalization of a FFELP-like program — over time we think DFS could play a significant role in any program designed to ease the debt burden to legacy Federal student loans, and 3) While we do not know where the full monetization of this company’s owned payments network will take it, we believe the outcome will be positive, and is not captured in the shares’ current value."

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 $68.38 yesterday.

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