Barclays analyst Terry Ma upgrades $Discover Financial Services (DFS.US)$ to a buy rating, and adjusts the target price from $137 to $186.
According to TipRanks data, the analyst has a success rate of 54.5% and a total average return of 2.4% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Discover Financial Services (DFS.US)$'s main analysts recently are as follows:
Heading into 2025, there's a preference for consumer finance stocks that possess potential catalysts not yet fully reflected in their market prices, likely to contribute to further growth. Analysts suggest a possible increase in merger activities and improved credit conditions, alongside enhanced capital reserves.
The results of the recent election seem to have revitalized business and consumer confidence, leading to a more positive outlook for the U.S. economy, but reducing expectations for additional Federal Reserve easing measures. This shift is expected to have favorable implications for stocks associated with consumer credit and spending, though it may not bode as well for those connected with the mortgage market, which remains subdued due to high rates and a limited housing supply.
The firm views the consumer finance stocks positively as the fourth quarter results approach, attributing this optimism to improving consumer metrics and regulatory catalysts. The presence of modestly higher interest rates, according to analysts, does not negatively impact the fundamentals or performance of the stocks. There's a strong belief that a rally will continue for card issuer and network stocks.
Note:
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