Nomura Securities Reiterates a 'Buy' on Discover Financial (DFS); Positive on Analyst Day and Q4 Results
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Price: $200.05 --0%
Rating Summary:
21 Buy, 16 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
21 Buy, 16 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities reiterates a 'Buy' on Discover Financial (NYSE: DFS) price target raised from $30 to $38.
Analyst, Brian Foran, said, "We increase our 2012E from $3.40 to $4.00 (Street at $3.71) and our 2013E from $3.50 to $3.80 (Street at $3.71). Most of the trends in Discover’s numbers are straightforward – year-over-year card growth gets a little better each quarter and expenses running just a bit above the company’s 4.5% of loans target. We believe NIM risk is balanced from here flat at 9% and positively biased in 2Q12, 3Q12, 2Q13, and 3Q13 and negatively biased in 4Q12 and 1Q13. Given a 14% Tier common ratio plus a ~20% ROE, at some point there will either need to be acquisitions or special dividend/buyback to get to the 9.5% long-term target."
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.
Analyst, Brian Foran, said, "We increase our 2012E from $3.40 to $4.00 (Street at $3.71) and our 2013E from $3.50 to $3.80 (Street at $3.71). Most of the trends in Discover’s numbers are straightforward – year-over-year card growth gets a little better each quarter and expenses running just a bit above the company’s 4.5% of loans target. We believe NIM risk is balanced from here flat at 9% and positively biased in 2Q12, 3Q12, 2Q13, and 3Q13 and negatively biased in 4Q12 and 1Q13. Given a 14% Tier common ratio plus a ~20% ROE, at some point there will either need to be acquisitions or special dividend/buyback to get to the 9.5% long-term target."
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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