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Investing.com - BTIG has reiterated its Buy rating and $100.00 price target on Synchrony Financial (NYSE:SYF) following the company’s third-quarter 2025 earnings report, despite the stock closing lower after the announcement. Currently trading at a P/E ratio of 7.76, InvestingPro data suggests the stock is slightly overvalued at its current price of $72.32, though analysts maintain an optimistic outlook with targets ranging from $60 to $100.
The financial services company reported earnings that exceeded consensus estimates, with BTIG expressing surprise at the negative market reaction. The research firm attributed the stock’s decline to investor disappointment over lower net revenue guidance for 2025, which raised concerns about potential misses in 2026 growth expectations. Despite these concerns, InvestingPro analysis shows the company maintains strong financial health with a "GREAT" overall score, supported by consistent dividend payments for 10 consecutive years and a recent 20% dividend growth.
BTIG explained that the weaker 2025 revenue outlook stems from increased payment speeds and fewer late fees, both resulting from Synchrony’s improving customer credit mix. The firm views these factors as positive developments that should enable Synchrony to accelerate growth in 2026 by expanding its credit box.
According to BTIG’s analysis, Synchrony has begun removing approximately 30% of its tighter underwriting restrictions, which should help improve growth rates. The research firm also highlighted positive data points, including a 10% year-over-year increase in new accounts during the third quarter of 2025.
BTIG noted that Synchrony’s recent merchant partnerships with Walmart and Amazon are not yet factored into growth projections, suggesting these relationships could drive mid-single digit year-over-year growth in 2026 even without further credit box adjustments. The company has demonstrated solid performance with a 56.2% price return over the past six months. For deeper insights into Synchrony’s growth potential and comprehensive analysis, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed metrics and expert analysis.
In other recent news, Synchrony Financial reported impressive third-quarter 2025 earnings, surpassing analysts’ expectations. The company delivered an earnings per share of $2.86, notably higher than the projected $2.21. Additionally, Synchrony Financial exceeded revenue forecasts, posting $3.82 billion compared to the anticipated $3.80 billion. Despite these strong financial results, the stock experienced a slight pre-market decline. Wells Fargo raised its price target for Synchrony Financial to $85, maintaining an Overweight rating, citing positive credit performance, capital position, and loan growth. Meanwhile, Citizens reiterated its Market Outperform rating with an $88 price target, following the company’s earnings release. These developments reflect recent analyst assessments and financial performance highlights.
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