Nomura Reiterates Buy, Boosts PT on Discover Financial (DFS)
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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 reiterated a Buy rating on Discover Financial (NYSE: DFS) and increased its price target to $45.00 (from $41.00).
"Overall, we were pleased with the company’s performance this quarter across nearly all fronts,” said analyst Bill Carcache. "Notably, Discover continues to generate fasterthan-industry loan growth, NIM expansion (despite modest pressure on yields), and better-than expected credit performance. Further, Discover continues to return a significant amount of capital to shareholders (total share repurchases were $350mn in 3Q12, modestly better than our estimate of $300mn)."
"We walked away from the conference call feeling like the company can continue to generate significant earnings growth in 2013 as loan growth remains on track, the NIM remains relatively stable (at least over the next few quarters), new business lines (e.g., Home Loans and 3P network deals) begin to cycle through, and share buybacks continue to contribute to EPS growth. All told, we expect these positive developments to morethan-offset modest loan growth-related charge-off headwinds, while allowing the company to generate EPS growth in at least the high singledigit range (excluding the impact of reserve releases/builds) next year," said Carcahe.
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 $39.71 yesterday.
"Overall, we were pleased with the company’s performance this quarter across nearly all fronts,” said analyst Bill Carcache. "Notably, Discover continues to generate fasterthan-industry loan growth, NIM expansion (despite modest pressure on yields), and better-than expected credit performance. Further, Discover continues to return a significant amount of capital to shareholders (total share repurchases were $350mn in 3Q12, modestly better than our estimate of $300mn)."
"We walked away from the conference call feeling like the company can continue to generate significant earnings growth in 2013 as loan growth remains on track, the NIM remains relatively stable (at least over the next few quarters), new business lines (e.g., Home Loans and 3P network deals) begin to cycle through, and share buybacks continue to contribute to EPS growth. All told, we expect these positive developments to morethan-offset modest loan growth-related charge-off headwinds, while allowing the company to generate EPS growth in at least the high singledigit range (excluding the impact of reserve releases/builds) next year," said Carcahe.
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 $39.71 yesterday.
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