Nomura Securities Maintains a 'Buy' on Discover Financial (DFS); Q2 Earnings Preview

Nomura Securities maintains a 'Buy' on Discover Financial (NYSE: DFS), PT $27.

Nomura analyst, Brian Foran, said, "Credit should be positive as early delinquency fell 13% in the first two months of 2Q (we see the last month June 15th). Net interest margin could be another positive...We bump up our estimates to factor in a more resilient NIM and a lower provision in 2Q. This leads us to increase 2QE to $0.71 (was $0.68), 2011E to $2.85 (was $2.80) and 2012E to $2.65 (was $2.55). Our estimates are ~4% above consensus. Further upside could come from deployment of DFS’ sizeable excess capital base, which we forecast ~25% of market cap by 2012YE."

For more ratings news on Discover Financial click here and for the rating history of Discover Financial click here.

Shares of Discover Financial closed at $22.82 yesterday.

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