Summary:
- Discover Financial Services (DFS, Financial) exceeded earnings expectations with a strong Q1 performance.
- Analysts forecast a positive outlook with an average target price of $200.64, indicating potential upside.
- The GF Value suggests a possible overvaluation, with a predicted downside of 14.07% from current levels.
Discover Financial Services (DFS) showcased a resilient start to the year, delivering a first-quarter earnings per share (EPS) of $4.25, which significantly surpassed analysts’ predictions of $3.30. The company also reported revenue of $4.25 billion, exceeding the anticipated $4.21 billion. Additionally, Discover Financial Services is preparing for a strategic merger with Capital One Financial in May 2025, setting the stage for future growth.
Wall Street Analysts Forecast
According to insights from 11 analysts, Discover Financial Services (DFS, Financial) is projected to reach an average price target of $200.64 over the next year, with high and low estimates of $240.00 and $153.00, respectively. This average target suggests a potential upside of 12.28% from the current stock price of $178.69. For a more comprehensive analysis, explore the Discover Financial Services (DFS) Forecast page.
The consensus recommendation from 17 brokerage firms positions Discover Financial Services (DFS, Financial) with an average rating of 2.5, marking an "Outperform" status. This rating is based on a scale where 1 represents a Strong Buy and 5 indicates a Sell, reflecting general optimism among analysts.
GuruFocus Valuation
GuruFocus estimates the GF Value for Discover Financial Services (DFS, Financial) at $153.55 within the coming year. This valuation points to a potential downside of 14.07% from the current trading price of $178.69, suggesting the stock might be overvalued at present. The GF Value is derived from the stock's historical trading multiples, past business growth, and future performance projections. For further insights, visit the Discover Financial Services (DFS) Summary page.
