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
Get Alerts DFS Hot Sheet
Price: $61.01 -5.23%

Rating Summary:
    17 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 29 | Down: 28 | New: 24
Trade DFS Now!
Join SI Premium – FREE
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.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View

Related Entities

Barclays, Earnings

Add Your Comment