Throughout the last three months, 6 analysts have evaluated Discover Finl DFS, offering a diverse set of opinions from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 0 | 5 | 0 | 0 |
| Last 30D | 0 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 0 | 3 | 0 | 0 |
| 3M Ago | 0 | 0 | 2 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $131.17, a high estimate of $145.00, and a low estimate of $120.00. This upward trend is evident, with the current average reflecting a 13.89% increase from the previous average price target of $115.17.
Understanding Analyst Ratings: A Comprehensive Breakdown
An in-depth analysis of recent analyst actions unveils how financial experts perceive Discover Finl. The following summary 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 |
|---|---|---|---|---|---|
| John Hecht | Jefferies | Raises | Buy | $145.00 | $137.00 |
| Mark Devries | Barclays | Raises | Equal-Weight | $123.00 | $120.00 |
| Donald Fandetti | Wells Fargo | Raises | Equal-Weight | $135.00 | $105.00 |
| Terry Ma | Barclays | Raises | Equal-Weight | $120.00 | $112.00 |
| Richard Shane | JP Morgan | Raises | Neutral | $120.00 | $110.00 |
| Saul Martinez | HSBC | Raises | Hold | $144.00 | $107.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Discover Finl. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Discover Finl compared to the broader market.
- Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Discover Finl's stock. This comparison reveals trends in analysts' expectations over time.
To gain a panoramic view of Discover Finl's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Discover Finl analyst ratings.
Get to Know Discover Finl Better
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.
A Deep Dive into Discover Finl's Financials
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Positive Revenue Trend: Examining Discover Finl's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.51% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 6.51%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Discover Finl's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.0%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Discover Finl's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.18%, the company may face hurdles in achieving optimal financial returns.
Debt Management: With a below-average debt-to-equity ratio of 1.5, Discover Finl adopts a prudent financial strategy, indicating a balanced approach to debt management.
Understanding the Relevance of Analyst Ratings
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
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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