Nomura Instinet analyst Bill Carcache downgraded Discover Financial to Neutral from Buy with a price target of $89, down from $96. The shares are up 42% year-to-date but its GAAP earnings growth is "non-existent" in 2020 and unlikely to resume until 2021 at the earliest, Carcache tells investors in a research note. Further, the risk of incremental late-cycle provision headwinds is a growing concern over the next 12-18 months, adds the analyst. He believes that while investors get CECL is an accounting change that only accelerates the timing of loss recognition, the change will wipe out Discover's 2020 earnings growth.