Morgan Stanley analyst Betsy Graseck downgraded Discover Financial (DFS) to Equal Weight from Overweight with a $96 price target. The analyst believes the company’s capital return thesis has played out and been fully digested by the market. The stock has rallied past the price target while credit losses could weigh on its earnings growth in 2023, the analyst tells investors in a research note. Morgan Stanley prefers the "positive earnings growth story" out of American Express (AXP), its new top pick in consumer finance.
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Published first on TheFly
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