Jefferies analyst John Hecht raised the firm’s price target on Discover to $135 from $125 and keeps a Buy rating on the shares. The firm anticipates ongoing elevated rates of loan growth, coupled with normalizing delinquencies and net charge off rates, the analyst tells investors in a Q2 card issuer preview note. Delinquencies continue to rise for most issuers, but companies remain well-reserved for a variety of macroeconomic scenarios and the firm does not expect meaningful increases to loss reserves, the analyst added.
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