Recently, shares of Discover Financial Services (Symbol: DFS) have surpassed the average 12-month analyst target price, now trading at $176.58 per share compared to a target of $174.54. This shift raises questions about how analysts will respond. They can either downgrade the stock based on valuation or increase their target price to reflect new expectations. The approach they take could be influenced by the company’s recent performance and outlook.
Within the Zacks coverage universe, analysts have varying opinions on Discover Financial Services, leading to an average price target of $174.54. However, it’s important to note that this figure represents a collective view. For example, while one analyst anticipates the stock could drop to $137.00, another has set a high target of $232.00. The standard deviation among these targets is $27.348.
The purpose of analyzing the average target price for DFS is to gauge the “wisdom of crowds.” This calculation combines contributions from multiple analysts, providing a broader perspective than any single analyst might offer. As DFS moves past the target price, investors should reconsider their positions: will $174.54 serve as a stepping stone toward even higher valuations, or is it time to take profits as the price potentially stabilizes? Below is a summary of analyst ratings for Discover Financial Services:
| Recent DFS Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 3 | 3 | 3 | 3 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 10 | 10 | 10 | 10 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 2.5 | 2.5 | 2.5 | 2.5 |
The average rating in the table ranks from 1 (Strong Buy) to 5 (Strong Sell). This article references data provided by Zacks Investment Research via Quandl.com. For more detailed analysis, get the latest Zacks research report on DFS — for free.
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The views expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.
