Discover price target lowered to $108 from $119 at Citi

Citi analyst Arren Cyganovich lowered the firm’s price target on Discover Financial Services to $108 from $119 and keeps a Neutral rating on the shares post the Q2 results. The second year in a row of regulatory issues followed by pausing share repurchases, higher expenses and internal investigations “has us feeling as if we’ve gone down this road before,” the analyst tells investors in a research note. The firm says the negative share reaction, down 15%, seems appropriate due to this uncertainty, given the impact to earnings from lower buybacks and notably higher expenses to boost its compliance functions.