RBC Capital has adjusted its price target for Discover Financial Services (DFS, Financial), reducing it to $186 from the previous $210, while maintaining a "Sector Perform" rating on the stock. This revision aligns with RBC's broader analysis of the consumer finance sector, anticipating the company's first-quarter results.
The research highlights expectations for Discover to follow typical seasonal patterns with reduced loan and transaction volumes in the first quarter. However, RBC foresees stable credit conditions for Discover, with an improvement in year-over-year delinquency rates across most entities in the sector.
While the outlook for credit trends is positive, RBC cautions that the provision for loan losses and reserve levels for Discover might increase due to a more uncertain economic landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Discover Financial Services (DFS, Financial) is $201.09 with a high estimate of $240.00 and a low estimate of $153.00. The average target implies an upside of 23.58% from the current price of $162.72. More detailed estimate data can be found on the Discover Financial Services (DFS) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Discover Financial Services's (DFS, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Discover Financial Services (DFS, Financial) in one year is $153.55, suggesting a downside of 5.64% from the current price of $162.72. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Discover Financial Services (DFS) Summary page.
