Discover Earnings Report Due Thursday; Jefferies (DFS)

Discovery Financial Services DFS is releasing its FY2Q earnings report on Thursday, Jun 24th. Jefferies analysts Richard Shane, Jonathan Philpot, and Roman Leal maintained their Buy rating for DFS ahead of the expected earnings report. Their price target is $18.00, based on a 11x multiple on an EPS estimate of $1.60. The analysts said, "While portfolio runoff and lower yields will likely work against the company over the course of 2010, the company is positioned to benefit from a recovery in consumer credit. As DQs and losses decline, lending will resume and DFS's earnings should be augmented by a release of credit reserves."