NEW YORK (TheStreet) -- Shares of Discover Financial Services Inc (DFS) are slipping, down 0.47% to $65.70 in early market trading Thursday, after the Riverwoods, IL-based payment services company was downgraded to "hold" from "buy" by analysts at Deutsche Bank this morning.
Analysts at the firm set a $68 price target on shares, and cited valuation as well as high expectations for Discover's loan growth.
Deutsche Bank analysts added that they see a better risk/reward ratio in shares of Capital One Financial Corp (COF) , which it initiated coverage on this morning with a "buy" rating.
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Shares of Capital One are rising 0.77% to $82.20 this morning.
Separately, TheStreet Ratings team rates DISCOVER FINANCIAL SVCS INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DISCOVER FINANCIAL SVCS INC (DFS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."