Discover Financial (DFS) PT Raised to $132 at BMO Capital

BMO Capital analyst James Fotheringham raised the price target on Discover Financial (NYSE: DFS) to $132.00 (from $130.00) while maintaining a Market Perform rating following results which included higher-than-expected revenue.

The analyst commented, "Following DFS’s 4Q21 core top-line beat (higher net fees) and encouraging guidance (loan growth to exceed cost growth), we raise our forward estimates by 3% (primarily due to higher expected revenues), and we raise our target price to $132 (from $130). DFS shares have re-rated meaningfully since the start of the pandemic; our new (higher) target now implies a mid-teens return, but we see even greater upside among payment technology stocks (like PYPL, NVEI, and GPN) and alternative asset managers (like APO, KKR, and CG)."

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