Jefferies Maintains a 'Buy' Discover Financial (DFS); Solid Q1

Jefferies maintains a 'Buy' Discover Financial (NYSE: DFS) price target raised from $34 to $37.

Analyst, Daniel Furtado, said, "DFS reported EPS of $1.18, which was above our estimate of $0.99 and consensus of $0.94, mostly on a reserve release of $226M or roughly $0.27 per share. Loan growth of 3.6% y/y and spending volume growth of 7% y/y were also above expectations. We continue to remain positive on DFS shares and expect credit to be contained into 2013."

Raises FY12 EPS estimate from $0.75 to $0.82 and FY13 from $0.83 to $0.88.

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 $31.64 yesterday.

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