Discover taking consumer lending share from big banks - Barron's

Reuters

Nov 3 (Reuters) - U.S. credit card company DiscoverFinancial Services is taking share from big banks inconsumer lending and is delving into lucrative new products,according to an article published in Barron's on Sunday.

Earnings should top $5 a share next year and the stockprice, which was $52.00 as of Friday's close, could gain 20percent over the next year, the magazine said.

Discover's network remains small but profitable, Barron'ssaid, since transaction fees come with high margins.

The company is entering new partnerships, including one withPayPal for card-based partnerships, which Barron's said candrive volumes higher with relatively low investment.

PayPal is a unit of eBay Inc.

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