Goldman Sachs Upgrades Discover Financial (DFS) to Conviction Buy, Sees 20% Upside

Goldman Sachs upgraded Discover Financial (NYSE: DFS) from Neutral to Conviction Buy with a price target of $39 (up from $36), suggesting 20% upside.

The firm sees upside to consensus EPS, citing: a stable to improving NIM; better-than-peer loan growth driven by improved merchant acceptance; sub-normalized credit losses (3-3.5%) for the next few years; and opportunities to deploy excess capital via a higher dividend and buy-backs.

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 $32.49 yesterday.

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