Wells Fargo has adjusted its price target for Discover Financial Services (DFS, Financial), reducing it from $214 to $180. Despite this revision, the firm maintains an Equal Weight rating on Discover's shares, reflecting a balanced view of its stock prospects following the company's latest quarterly performance.
Discover's results for the first quarter exceeded expectations, largely due to a decrease in provisions and operational expenses. The company's credit metrics also demonstrated ongoing improvement, which allowed Discover to release some of its reserves during this period. These developments have informed Wells Fargo's updated assessment and subsequent decision to lower the price target for DFS.
