Forecast Of The Day: Discover Financial’s Discover Network Proprietary Volumes
What?
Discover Financial’s (NYSE: DFS) Discover Network Proprietary Volumes – which is the total dollar value of all the purchases made on Discover credit cards – declined marginally from around $146 billion in 2019 to about $143 billion in 2020. However, Trefis expects the metric to rise to about $179 billion in 2021 and $187 billion in 2022.
Why?
- Up 8% YTD, What To Expect From Discover Financial Stock In Q1?
- Up 14% YTD, What’s Next For Discover Financial Stock?
- Discover Financial Stock Is Undervalued
- Discover Financial Stock Is Fairly Priced At The Current Levels
- Discover Financial Stock To Edge Past The Revenue Consensus In Q1
- Discover Financial Stock Is Attractive At The Current Levels
While the metric saw a dip in 2020 due to the Covid-19 pandemic, which impacted consumer spending, the economic recovery following the lockdowns, coupled with a growing merchant network are likely to help Discover.
So What?
However, we think the projected growth is fully priced into Discover stock, which remains up by almost 50% year-to-date. We value DFS stock at $135 per share, roughly in line with the current market price.
See Our Complete Analysis For Discover Financial
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