UPDATE: Nomura Reiterates on Discover Financial Services Following Investor Meetings

In a report published Tuesday, Nomura analyst Bill Carcache reiterated a Buy rating on Discover Financial Services (NYSE: DFS), and raised the price target from $57.00 to $61.00.

In the report, Nomura noted, “We recently hosted DFS management at investor meetings on the West Coast. We walked away from our meetings with increased conviction in our view that DFS will continue to outperform competitors by delivering industry-leading loan growth and credit performance. We expect DFS to be aggressive in seeking approval for payout distributions as close to 100% as possible under next year's CCAR. Our 2014 / 2015 estimates are about 2% / 4% ahead of consensus, which we expect to see move closer to us over time. We are also initiating a year-end 2014 target price of $61, which implies 11x 2015E.”

Discover Financial Services closed on Monday at $51.93.