Piper Sandler Downgrades Discover Financial Following Q2 Revenue Disappointment

Analysts lowered the price target of Discover Financial Services DFS after the company reported worse-than-expected Q2 2023 quarterly results

The company reported revenue growth of 21% Y/Y to $3.878 billion vs. estimates of $3.8 billion, and quarterly EPS of $3.54 missed the consensus of $3.67.

Morgan Stanley lowered the price target to $107 from $117 at an Equal-Weight rating.

The analyst lowered the EPS estimate to $13.08 (from $13.35) in 2023 and $12.57 (from $13.76) in 2024. 

BMO Capital reduced the price target to $99 from $103 with a Market Perform rating.

Analyst James Fotheringham lowered core EPS estimates to $12.56 (from $13.02) in 2023, $12.98 (from $13.47) in 2024, and $14.64 (from $15.16) in 2025 due to lower-than-previously expected net interest income, higher expenses, and lower buybacks.

Citigroup cut the price target to $108 from $119 with a Neutral rating.

Meanwhile, Piper Sandler downgraded the rating to Neutral (from Overweight) at a decreased price target of $112 from $130.

Price Action: DFS shares are trading higher by 2.43% at $104.94 on the last check Friday.

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