Citi cuts Discover target, opens ‘positive catalyst watch’

Citi analyst Arren Cyganovich lowered the firm’s price target on Discover to $115 from $118 and keeps a Neutral rating on the shares. The analyst expects consumer finance stocks to report "generally good results with few changes to full year outlooks." Unemployment trends remain better than expected and while credit shows some weakening in cards, not to levels that should lead to higher full-year guides, the analyst tells investors in a research note. Into the quarter, Citi feels best about Discover Financial Services (DFS) and worst on Capital One Financial (COF) and opened respective 30-day positive and negative catalyst watches on each.