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Discover Financial Higher; Price Targets Rise at Citi, Barclays

Analysts at Citi and Barclays raised their price targets on credit-card issuer Discover Financial. The stock is higher.
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Discover Financial Services  (DFS) - Get Discover Financial Services Report jumped on Friday after analysts at Citigroup  upgraded the shares to buy from neutral, saying the credit-card issuer stands to gain from increased consumer payments. 

Analyst Arren Cyganovich also raised his price target on the Riverwoods, Ill., company to $150 from $101. Discover has the "clearest near-term path" to benefit from the economic reopening of the country, the analyst said. 

Discover Financial Services shares at last check were 5.5% higher at $121.65. 

Analysts at Barclays also lifted their price target on Discover, to $146 from $132, while affirming an overweight rating.

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Discover Financial shares have more than doubled (up 162%) over the past 12 months, compared with a 151% increase for its financial-services peers, according to Bloomberg data. 

In April, the company topped first-quarter analyst estimates, posting net income of $1.6 billion, or $5.04 a share, on revenue of $2.8 billion. 

For the year-earlier quarter the company had posted a loss of $61 million, or 25 cents a share, on revenue of $2.9 billion. 

Discover had been expected to report adjusted net income of $851.5 million, or $2.83 a share, on sales of $2.8 billion, based on a FactSet survey of 20 analysts.

The company said its provision for credit losses decreased $2.2 billion during the period. It said the 30-day delinquency rate for credit card loans was 1.85%, down 0.77 percentage point from the year-earlier quarter.