Discover price target lowered to $98 from $116 at Stephens

Stephens lowered the firm’s price target on Discover (DFS) to $98 from $116 and keeps an Equal Weight rating on the shares. The firm, which is concerned about implications of prime consumer credit from Discover’s higher credit reserve ratio, thinks this has negative implications for prime credit at other consumer lenders it covers, including American Express (AXP) and Capital One (COF), the analyst tells investors in a post-earnings note. The firm also pushes back its expectation for Discover to make share repurchases until the second half of 2024, noting that such a resumption “has been a key bull case among investors.”