Discover price target lowered to $130 from $142 at RBC Capital

RBC Capital analyst Jon Arfstrom lowered the firm’s price target on Discover to $130 from $142 but keeps an Outperform rating on the shares. A higher-than-expected loan loss provision drove earnings headwinds, but the company’s core trends were generally broadly solid, the analyst tells investors in a research note. RBC added that credit continues to normalize higher at a manageable pace, and Discover management’s outlook for net charge-offs was favorably adjusted downward.