- The Department of Justice gives a green light to Capital One's $35 billion acquisition of Discover Financial, removing antitrust hurdles.
- Analysts forecast a significant upside for Discover Financial with a one-year price target averaging $210.36.
- Discover Financial's current market dynamics and GF Value suggest a potential downside, making it a complex investment consideration.
The U.S. Department of Justice has granted approval for Capital One's (COF) ambitious $35 billion acquisition of Discover Financial (DFS, Financial), concluding that the merger poses no significant antitrust concerns. This pivotal decision has helped narrow the deal's spread and has influenced the stock market performance of both companies, particularly impacting trading on Wednesday.
Wall Street Analysts' Projections
Examining the one-year price targets from 11 analysts, Discover Financial Services (DFS, Financial) holds an average target price of $210.36. This projection includes a high estimate of $244.00 and a low estimate of $179.00, suggesting a potential upside of 28.17% from its current stock price of $164.13. For an in-depth analysis, refer to the Discover Financial Services (DFS) Forecast page.
Market sentiment from 17 brokerage firms reflects a consensus recommendation of 2.5 for Discover Financial Services (DFS, Financial), indicative of an "Outperform" rating. This evaluation scale ranges from 1 (Strong Buy) to 5 (Sell), underscoring a generally positive outlook among analysts.
According to GuruFocus' insights, the estimated GF Value for Discover Financial Services (DFS, Financial) in the coming year is pegged at $154.47, pointing to a potential downside of 5.89% from its current trading price of $164.13. This GF Value metric represents GuruFocus' estimate of the stock's intrinsic worth, derived from historical trading multiples and projections of future business growth. More comprehensive details are available on the Discover Financial Services (DFS) Summary page.
