The Discover Financial Services (DFS) space is abuzz with activity following Capital One's completed acquisition for $35.3bn. This makes Capital One the 8th largest US bank. DFS's stock was delisted post-merger, with expert Jim Cramer stating the move primes DFS to disrupt leading financial service providers, Mastercard and Visa. The Wall Street analysts' target price is on everyone's radar.
Despite the merger, not many changes have been declared for cardholders. Meanwhile, the Market reacted favorably with DFS's stock racing higher this week. The merger's acquisition approvals from regulatory bodies like the Delaware State Bank Commissioner and the Federal Reserve have only boosted market sentiment.
DFS shows promise with its first-quarter 2025 net income of $1.1 Billion, beating analyst expectations. Their financial strength is further demonstrated in Q1 with a lower credit card delinquency rate. However, they faced a $250M penalty over merger approval issues but managed to record an earnings per share increase of 90c consecutively.
The merger brought few concerns mainly from Senator Warren urging the Federal Reserve to reconsider the deal on grounds of harm to subprime competition. DFS currently records a 12.8% potential upside with strong revenue growth.
Discover Financial Services DFS News Analytics from Sat, 14 Sep 2024 07:00:00 GMT to Thu, 22 May 2025 11:49:00 GMT - Rating 8 - Innovation 7 - Information 9 - Rumor -2
