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

Nov 3 (Reuters) - U.S. credit card company Discover Financial Services is taking share from big banks in consumer 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 stock price, which was $52.00 as of Friday's close, could gain 20 percent over the next year, the magazine said.

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

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

PayPal is a unit of eBay Inc.