Discover price target raised to $160 from $152 at Wells Fargo

Wells Fargo raised the firm’s price target on Discover (DFS) to $160 from $152 and keeps an Equal Weight rating on the shares. The SEC comments should not delay the merger approval or closing, but could push out the final S-4/joint proxy and shareholder vote a bit, the analyst tells investors in a research note. The firm thinks either the SEC either ends up being “ok” with the accounting or views it as immaterial or some restatements will need to be made, but either way it does not impact cumulative historical earnings or capital or the counterpart liability and shouldn’t change the merger closing timing.