UPDATE: Sterne Agee Raises PT on Discover Financial Services to $30

Sterne Agee is out with its report today on Discover Financial Services (NYSE: DFS), raising its PT from $27 to $30.

In a note to clients, Sterne Agee writes, "DFS is evolving into something that is significantly more durable that just a well-run card lender with deposit funding. Its banking platform is expected to become a more vibrant part of the equation over the next 24 months and we have talked in the past about the importance of the network's contribution to earnings growth. We are raising our price target from $27 to $30. This price target is based on 2013 EPS and peer valuation data; it is supported by our line of business analysis as well."

Sterne Agee maintains Buy on DFS.

Shares of DFS closed Tuesday at $23.55.