- Discover Financial Services faces a $250 million fine for unsafe banking practices.
- Despite regulatory challenges, Discover secures a $35 billion merger with Capital One Financial.
- Analysts predict a 23.65% potential upside in DFS stock price.
Discover Financial Services (DFS, Financial) has recently been fined $250 million due to unsafe banking practices and the overcharging of interchange fees. Despite this setback, the company has successfully obtained approval for a significant $35 billion merger with Capital One Financial. To ensure future compliance, regulatory bodies have mandated Discover to implement new policy changes aimed at addressing these prior issues.
Wall Street Analysts Forecast
According to 11 analysts' one-year price targets, Discover Financial Services (DFS, Financial) is set to reach an average price target of $200.64, with the highest prediction at $240.00 and the lowest at $153.00. This average target suggests a potential upside of 23.65% from the current trading price of $162.26. For more comprehensive estimate data, visit the Discover Financial Services (DFS) Forecast page.
The consensus recommendation from 17 brokerage firms positions Discover Financial Services (DFS, Financial) with an average brokerage recommendation of 2.5, which corresponds to an "Outperform" rating. This rating scale ranges from 1 (Strong Buy) to 5 (Sell), highlighting positive sentiment among analysts.
Based on GuruFocus estimates, the projected GF Value for Discover Financial Services (DFS, Financial) in one year is $153.55. This suggests a downside of 5.37% from the current price of $162.26. The GF Value is GuruFocus' estimate of the fair value at which the stock should be traded. It is derived from historical trading multiples, past business growth, and future performance estimates. For a deeper dive into the figures, explore the Discover Financial Services (DFS) Summary page.
