William Blair Sees Significant Upside for Discover (DFS)

William Blair Sees Significant Upside for Discover (DFS)

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William Blair analyst sees significant upside to financial services company, Discover Financial Services (DFS).

Following his upgraded of the company from “Market Perform” to “Outperform,” analyst Robert Napoli said that he believes Discover which had a current price of $41.42 on Thursday morning, should be trading in the mid-fifty range.

Napoli also noted that the stock should be estimated at 13 times the firm’s FY2015 EPS estimate of $4.23. This estimate suggests a 35%-40% increase in DFS’s share price.

The analyst said that he estimates DFS will report FY2013 earnings of $4.56 per share, FY2014 earnings of $4.50 per share, and $4.23 per share for FTY2015.

Discover shares were mostly flat during Thursday morning trading. The stock has increased 36% in the past year.

The Bottom Line
Shares of Discover Financial Services (DFS) have a 1.35% yield, based on Thursday morning’s price of $41.46.

Discover Financial Services (DFS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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