Discover Financial Services initiated with "neutral"

06/22/07 - Credit Suisse

NEW YORK, June 22 (newratings.com) - Analyst M Orenbuch of Credit Suisse initiates coverage of Discover Financial Services (DFS) with a "neutral" rating. The target price is set to $31.

In a research note published this morning, the analyst mentions that the company is attempting to widen its domestic coverage of smaller and midsized merchants and is expanding its international coverage through partnership agreements. Discover Financial Services gained access to the rapidly growing debit market through the PULSE network acquisition in 2005, the analyst says. The company appears focused on raising the share of wallet in the US card business and making a comeback to profitability during 2008, Credit Suisse adds.