Nomura Securities Maintains a 'Buy' on Discover Financial (DFS); A Review of 3Q Results

Nomura Securities maintains a 'Buy' on Discover Financial (NYSE: DFS) price target of $30.00.

Nomura analyst, Brian Foran, says, "Discover had a muted reaction to a big beat. That said, the stock this year has moved one for one with 2012 estimate revisions. Here we think the story is positive as 3Q results are likely to lead consensus to revise net interest margin up and credit losses down. We revise 2011E EPS to $3.90 from $3.50, our 2012E to $3.30 from $3.00 and introduce 2013E at $3.40. We view the 10% positive revision to 2012 as most meaningful for the stock. We increase our PT to $30 from $28, implying DFS will trade at 9x 2012E. Key risk: rising unemployment."

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 $25.25 yesterday.

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