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Discover potential student sale modest positive, says JPMorgan

JPMorgan analyst Richard Shane keeps a Neutral rating on Discover Financial after the company announced its board has authorized management to explore a sale of the student loan portfolio and transfer of servicing to a third-party provider. The analyst views a sale of Discover’s student loan portfolio as a potential modest positive, but believes that the potential for a resumption or increase to share repurchases is likely dependent on the resolution of other regulatory matters and the announcement of a new permanent CEO.

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