JPMorgan analyst Richard Shane raised the firm’s price target on Discover to $120 from $110 and keeps a Neutral rating on the shares as part of the firm’s consumer finance Q1 earnings preview. Entering Q2, investors should take advantage of the recent rally in consumer finance names by taking profits and reducing risk, the analyst tells investors in a research cenote. While the firm is not suggesting “the sky is falling,” it believes the sector has re-rated too quickly, creating a widening gap between fundamentals and valuations.
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