TD Cowen analyst Moshe Orenbuch has maintained their bullish stance on DFS stock, giving a Buy rating on April 8.
Moshe Orenbuch has given his Buy rating due to a combination of factors including Discover Financial Services’ strong financial performance in the first quarter of 2025. The company reported earnings per share that exceeded both his and the consensus estimates, largely driven by lower-than-expected provisions and improved credit conditions. The release of reserves and lower card losses contributed to this performance, indicating a positive trend in credit quality.
Additionally, revenue saw a slight increase, supported by higher net interest income due to improved loan yields across products, despite a shortfall in other income. Operating expenses were also lower than anticipated, aligning with expectations for loan growth and card sales. Following these results, Orenbuch adjusted his earnings estimates for the coming years upwards and set a price target of $184, reflecting confidence in the company’s future prospects.
In another report released on April 8, Barclays also maintained a Buy rating on the stock with a $153.00 price target.