Sterne Agee Raising Price Target On Discover Financial Services

According to Sterne Agee, Discover Financial Services' (NYSE: DFS) price target is raised.

Sterne Agee reported that, following a review of the company's most recent quarterly results and the information supplied at the company annual investor day (03/23/10), it is increasing its price target from $22 to $27. “Our price target is based on 2012 EPS, median commercial bank PEs, and a valuation that focuses on both line of business estimates and estimated earnings potential of $2.50 per share.”

Discover Financial Services closed yesterday at $23.44.