An analyst at FBR Capital Markets said that Discover Financial Services (NYSE: DFS) is “among the better positioned card companies to generate earning asset growth” in a research note to investors on Tuesday.
Analyst Scott Valentine reiterated his “outperform” Rating and $19.00 price target after the company reported a better than expected third-quarter profit on Tuesday.
Last week, the Riverwoords, IL-based company said that it would purchase Student Loan Corp (NYSE: SLC) from Citigroup, Inc (NYSE: C) for $600 million. Discover said that the deal would add to the company’s top-line revenue and profit immediately and help the company expand its student lending services.
Discover Financial Services (DFS) is a credit card issuer in the United States and an electronic payment services company. The Company offers credit cards, personal and student loans, and deposit products. The Company is bank holding and financial holding company. It operates the Discover Network, its credit card payments network; the PULSE Network (PULSE), its automated teller machine, debit and electronic funds transfer network, and Diners Club International (Diners Club), its global payments network. The Company’s business segments include Direct Banking and Payment Services. Its Direct Banking segment includes credit cards issued to individuals and small businesses on the Discover Network, its other consumer lending products and its deposit products. The Company’s Payment Services segment includes PULSE, Diners Club and its third-party issuing business, which includes credit, debit and prepaid cards issued on the Discover Network by third parties.
Shares of DFS traded up 0.12% during mid-day trading on Tuesday.
