Discover Finl DFS has been analyzed by 12 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 3 | 5 | 0 | 0 |
| Last 30D | 1 | 1 | 2 | 0 | 0 |
| 1M Ago | 1 | 1 | 1 | 0 | 0 |
| 2M Ago | 2 | 0 | 1 | 0 | 0 |
| 3M Ago | 0 | 1 | 1 | 0 | 0 |
Analysts have set 12-month price targets for Discover Finl, revealing an average target of $114.75, a high estimate of $140.00, and a low estimate of $94.00. This current average has increased by 3.48% from the previous average price target of $110.89.
Exploring Analyst Ratings: An In-Depth Overview
The standing of Discover Finl among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Jon Arfstrom | RBC Capital | Lowers | Outperform | $117.00 | $130.00 |
| Ryan Nash | Goldman Sachs | Lowers | Buy | $121.00 | $139.00 |
| Mark Devries | Barclays | Lowers | Equal-Weight | $112.00 | $124.00 |
| Saul Martinez | HSBC | Lowers | Hold | $107.00 | $121.00 |
| Meng Jiao | Deutsche Bank | Announces | Hold | $140.00 | - |
| Kevin Barker | Piper Sandler | Raises | Overweight | $129.00 | $104.00 |
| Arren Cyganovich | Citigroup | Raises | Buy | $133.00 | $93.00 |
| Ryan Nash | Goldman Sachs | Raises | Buy | $110.00 | $98.00 |
| Vincent Caintic | Stephens & Co. | Maintains | Equal-Weight | $98.00 | - |
| Mihir Bhatia | B of A Securities | Raises | Buy | $116.00 | $94.00 |
| Betsy Graseck | Morgan Stanley | Lowers | Equal-Weight | $94.00 | $95.00 |
| Moshe Orenbuch | TD Cowen | Announces | Outperform | $100.00 | - |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Discover Finl. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Discover Finl compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Discover Finl's stock. This examination reveals shifts in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Discover Finl's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Discover Finl analyst ratings.
Delving into Discover Finl's Background
Discover Financial Services is a bank operating in two distinct segments: direct banking and payment services. The company issues credit and debit cards and provides other consumer banking products including deposit accounts, students loans, and other personal loans. It also operates the Discover, Pulse, and Diners Club networks. The Discover network is the fourth-largest payment network in the United States as ranked by overall purchase volume, and Pulse is one of the largest ATM networks in the country.
Discover Finl's Financial Performance
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: Discover Finl's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 3.76%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.
Net Margin: Discover Finl's net margin is impressive, surpassing industry averages. With a net margin of 9.2%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Discover Finl's ROE excels beyond industry benchmarks, reaching 2.76%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Discover Finl's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.26%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Discover Finl's debt-to-equity ratio is below the industry average. With a ratio of 1.44, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Analyst Ratings: What Are They?
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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