Bread Financial stock rating reiterated at Market Perform by Citizens

Investing.com - Citizens has maintained its Market Perform rating on Bread Financial Holdings (NYSE:BFH), keeping its previous price target unchanged. The stock, currently trading at $59.03, sits within a wide analyst target range of $50 to $98, with InvestingPro data showing seven analysts recently revising their earnings expectations downward.

The decision comes as the financial services company continues to face competitive pressures, particularly from Buy Now, Pay Later (BNPL) offerings that have gained significant market share in the consumer credit space.

Citizens cited longer-term net interest margin uncertainty as a key factor in its rating decision, specifically pointing to the ongoing mix shift toward co-branded cards and potential Federal Reserve rate actions that could impact profitability.

The research firm views Bread Financial shares as fairly valued at approximately 7 times its 2026 earnings per share estimate.

The valuation also represents about 1.1 times Bread Financial’s projected year-end 2025 tangible book value, according to the analysis provided by Citizens.

In other recent news, Bread Financial Holdings Inc. announced its Q2 2025 earnings, showcasing a strong performance with adjusted earnings per share (EPS) of $3.15 and a net income of $149 million. The company’s revenue reached $929 million, which represented a slight 1% decline compared to the previous year. Despite the dip in revenue, the company reported a 4% growth in credit sales. Analysts have taken note of these developments, though specific upgrades or downgrades were not mentioned. Bread Financial’s financial results reflect its ability to maintain profitability amid revenue challenges. These recent developments provide investors with insights into the company’s current financial standing. The company’s performance continues to draw attention from financial analysts and investors alike.

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