Discover price target raised to $262 from $233 at Truist

Truist raised the firm’s price target on Discover (DFS) to $262 from $233 and keeps a Buy rating on the shares as part of a broader research note updating the firm’s models on Consumer Finance names after Q4 results and the latest management outlook. The firm’s price target increase reflects an improved earnings outlook based on higher net interest margin path, improving credit, and a deceleration in expenses as one-offs from the misclassification issue and student loan sales have mostly already been recognized, the analyst tells investors in a research note.