Discover price target lowered to $103 from $109 at Goldman Sachs

Goldman Sachs lowered the firm’s price target on Discover to $103 from $109 and keeps a Buy rating on the shares. Heading into the Q3 earnings reports, the analyst is “lukewarm” on the consumer finance stocks despite the recent underperformance. Credit losses are continuing to increase and the market has become concerned that this is no longer just “normalization,” the analyst tells investors in a research note. However, the stocks are currently “above mid cycle” credit losses and slowing loan growth, “which feels like it creates a decent entry point,” says Goldman.