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Fly News Breaks for January 25, 2019
SYF, COF, DFS
Jan 25, 2019 | 07:09 EDT
BMO Capital analyst James Fotheringham lowered his price target on Discover (DFS) to $85 and kept his Market Perform rating after its Q4 earnings miss driven by higher than expected costs. The analyst states that the company's peers such as Capital One (COF) and Synchrony (SYF) offer "much greater potential valuation", with Discover on the "wrong side of growth math" relative to those names. Fotheringham also warns about potential negative credit surprises as Discover is accelerating its loan growth despite a decelerating overall market.