- Discover Financial Services shows a slight improvement in credit card delinquency rates, but faces rising net charge-off rates.
- Wall Street analysts present mixed forecasts, with an overall "Hold" recommendation for DFS stock.
- GuruFocus estimates signal a potential downside, indicating the stock may be overvalued compared to historical trading multiples.
Discover Financial Services (DFS, Financial) has reported a noteworthy shift in its financial metrics for April 2025. The company's credit card delinquency rate dropped to 3.50%, representing a slight enhancement from the prior month's rate of 3.66%. This improvement is a positive sign for investors monitoring credit health. However, the net charge-off rate increased sharply to 5.04%. Despite these fluctuations, loan balances remained almost unchanged, showing a modest rise of just 0.5% month-over-month.
Wall Street Analysts' Forecast
The consensus among 11 analysts reveals a mixed outlook for Discover Financial Services (DFS, Financial). The average price target is projected at $200.55, with high expectations reaching $244.00, and more conservative estimates at $153.00. These figures suggest a slight potential upside of 0.22% from the current trading price of $200.11. Investors looking for detailed projections can explore the Discover Financial Services (DFS) Forecast page.
The consensus from 17 brokerage firms currently rates Discover Financial Services (DFS, Financial) at an average of 2.6, which translates to a "Hold" recommendation. On this scale, a rating of 1 is considered a Strong Buy, while 5 indicates a Sell.
Valuation Insights: GF Value Analysis
According to GuruFocus estimates, the projected GF Value for Discover Financial Services (DFS, Financial) in one year's time is $154.36. This figure signifies a potential downside of 22.86% from its current market price of $200.11. The GF Value is determined by analyzing historical trading multiples, past business growth, and future performance forecasts, providing investors with a comprehensive valuation metric. For further insights, visit the Discover Financial Services (DFS) Summary page.
