Discover price target raised to $119 from $115 at BMO Capital

BMO Capital raised the firm’s price target on Discover to $119 from $115 and keeps a Market Perform rating on the shares. The firm is raising its FY24 EPS view by 37c to $12.45 after the company’s Q2 net interest income beat driven by faster card growth and higher net interest margins in tandem with lower operating expenses, the analyst tells investors in a research note. BMO adds however that while the stock appreciated nearly 50% over the past six months, the firm remains concerned about consumer credit quality and regulatory pressures.