Key Takeaways:
- Discover Financial Services (DFS, Financial) reports a robust 31% increase in earnings per share.
- The upcoming merger with Capital One is expected to close by May 18, 2025, enhancing market competition and shareholder value.
- Analysts forecast a potential 12.08% upside for DFS, with an average target price of $200.27.
Discover Financial Services (DFS) recently revealed a notable 31% jump in earnings per share, driven by a consistent net interest margin and strong customer engagement. The forthcoming merger with Capital One, which has now cleared regulatory hurdles, is slated for completion by May 18, 2025. This merger aims to bolster market competition and increase shareholder returns.
Wall Street Analysts Forecast
According to projections from 11 analysts, Discover Financial Services (DFS, Financial) is poised for growth with a one-year average target price of $200.27. The high estimate reaches $240.00, while the low is $153.00, offering an average upside potential of 12.08% from its current trading value of $178.69. For a deeper dive into these price estimates, visit the Discover Financial Services (DFS) Forecast page.
Additionally, the consensus recommendation from 17 brokerage firms places Discover Financial Services (DFS, Financial) at an average brokerage recommendation of 2.5, indicating an "Outperform" status. This rating uses a scale where 1 represents a Strong Buy and 5 signifies a Sell.
GuruFocus estimates the GF Value for Discover Financial Services (DFS, Financial) in the upcoming year to be $153.55, suggesting a potential downside of 14.07% from the current price of $178.69. The GF Value represents GuruFocus' fair value estimate, calculated from the stock's historical trade multiples, past business growth, and future performance forecasts. For more comprehensive data, review the Discover Financial Services (DFS) Summary page.
