Analyst Richard B. Shane reiterated a neutral rating on Discover Financial and said that exiting the student loan serving business reduces reputational risk, even though the company faces other regulatory issues, such as the classification of some credit card accounts. Richard B. Shane, an analyst at J.P.Morgan, reiterated his neutral rating for Discover Financial. He said that exiting the student loans serving business would reduce reputational risks, despite the fact that the company is facing other regulatory concerns, such as the classification of certain credit card accounts. In September, the company suspended its stock buybacks. J.P.Morgan predicted that Discover Financial would see a 3% increase in its 2025 earnings per shares if it used half of the $417 million gain from the sale of its student loan portfolio to buy back stock. Discover Financial Services is also looking for a new CEO after Roger C. Hochschild’s departure in August. Shane stated that “we continue to believe repurchases will most likely resume once a permanent CEO is identified.” Discover Financial’s shares rose 0.4% on Thursday in premarket trading. The stock is up 9.6% over the last month compared to the S&P500 SPX which has gained 9.2%.