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Investing.com - BofA Securities has raised its price target on Synchrony Financial (NYSE:SYF) to $84.00 from $80.00, while maintaining a Buy rating on the stock. The company, currently trading at $75.69 and near its 52-week high of $77.41, has shown remarkable strength with a 67.84% return over the past year.
The price target increase represents a 9x price-to-earnings multiple on BofA’s 2026 earnings per share forecast, up from the previous 8.5x multiple.
BofA cited improving spending trends and the recent launch of the Walmart program as key factors giving the firm increased confidence that loan growth has reached its bottom and will "nicely accelerate" next year.
The research firm noted that Synchrony’s credit metrics are now in line with long-term targets, creating what it described as a "more normal underwriting backdrop" for the company.
This normalized credit environment should provide a boost to Synchrony Financial’s performance, according to BofA’s analysis.
In other recent news, Synchrony Financial reported its second-quarter 2025 earnings, with earnings per share (EPS) of $2.50, surpassing analyst expectations of $1.79 by 39.66%. However, the company’s revenue slightly missed projections, coming in at $3.65 billion compared to the forecasted $3.68 billion. Despite the earnings beat, the stock saw a minor dip in premarket trading. Additionally, Synchrony Financial released its monthly charge-off and delinquency statistics for the thirteen months ending July 31, 2025, and announced plans to continue providing these figures monthly. JMP Securities reiterated its Market Outperform rating and maintained a $77.00 price target on Synchrony Financial, citing improving credit trends in its portfolio. Meanwhile, KBW analyst Sanjay Sakhrani noted investor concerns in the financial sector about student loan loss rates, affecting companies like SLM and NAVI. These developments highlight the dynamic environment in which Synchrony Financial and its peers operate.
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