Goldman Sachs Reiterates Neutral on Discover Financial Services

Goldman Sachs reiterated its Neutral rating on Discover Financial Services DFS. At the same time, Goldman stressed its optimism about the company's near-term performance. In a research report published today, Goldman states, "While we remain Neutral rated, we do believe the shares could continue to outperform near term, particularly if 2Q results include several key items such as (1) loan growth (we look for 1%), (2) strong yoy sale volume growth (7% projected) and (3) minimal compression to its NIM (we model 10 bp decline) as continued funding cost improvement largely offsets the expected decline from its loan mix shift." At the moment, Goldman has a price target of $27 placed on the company's stock. On Tuesday, Discover added 1.78% to its value to close the day at $24.04.