Discover Financial Services Gets a Buy Rating from RBC Capital

By Carrie Williams

In a report released yesterday, Jason Arnold from RBC Capital reiterated a Buy rating on Discover Financial Services (NYSE: DFS), with a price target of $82. The company’s shares closed yesterday at $60.81.

According to, Arnold is a 5-star analyst with an average return of 11.2% and a 63.1% success rate. Arnold covers the Financial sector, focusing on stocks such as Apollo Investment Corp, Santander Consumer USA, and Capital One Financial.

Currently, the analyst consensus on Discover Financial Services is Strong Buy and the average price target is $79, representing a 29.9% upside.

In a report issued on May 12, Jefferies also reiterated a Buy rating on the stock with a $82 price target.

Discover Financial Services’ market cap is currently $23.25B and has a P/E ratio of 10.40. The company has a book value ratio of 2.1720.

Based on the recent corporate insider activity of 112 insiders, corporate insider sentiment is negative on the stock. Last month, Kathryn Mcnamara Corley, the EVP, GC & Sec of DFS sold 16,537 shares for a total of $936,328.

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Discover Financial Services is a direct banking and payment services company. It operates through its subsidiaries, Discover Bank and Discover Home Loans, Inc. The company runs its business through two segments: Direct Banking and Payment Services. The Direct Banking segment includes consumer banking and lending products, specifically Discover-branded credit cards issued to individuals and small businesses on the Discover Network and other consumer banking products and services, including private student loans, personal loans, home loans, prepaid cards and other consumer lending and deposit products. The Payment Services segment includes PULSE, Diners Club and the company’s network partners business, which includes credit, debit and prepaid cards issued on the Discover Network by third parties. Discover Financial Services was founded in 1986 and is headquartered in Riverwoods, IL.