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Investing.com - Citizens JMP has reiterated its Market Perform rating on Bread Financial Holdings (NYSE:BFH), maintaining its neutral stance on the financial services company. According to InvestingPro data, analyst targets range from $51 to $98, with six analysts recently revising earnings estimates upward for the upcoming period.
The research firm cited ongoing competitive pressures as a key factor in its assessment, particularly highlighting challenges from Buy Now, Pay Later (BNPL) offerings that continue to impact Bread Financial’s market position.
Citizens JMP also expressed concerns about longer-term net interest margin (NIM) uncertainty, which it attributes to two main factors: the company’s ongoing mix-shift toward cobranded cards and potential Federal Reserve rate actions.
The firm views Bread Financial shares as fairly valued at their current multiple of approximately 7x the firm’s 2026 earnings per share estimate, which excludes potential upside from mitigating actions that might occur next year.
The valuation assessment also notes that Bread Financial is trading at roughly 1.1x its year-end 2025 estimated tangible book value, further supporting the firm’s neutral Market Perform rating.
In other recent news, Bread Financial Holdings Inc. reported its second-quarter 2025 earnings, revealing an adjusted earnings per share (EPS) of $3.15, which significantly exceeded the analyst forecast of $1.92. However, the company’s revenue came in at $929 million, falling short of the anticipated $939.84 million and marking a 1% decline compared to the previous year. Additionally, Bread Financial announced a new $200 million share repurchase program, which has no expiration date and can be adjusted based on market conditions and other factors. The company also reported improved credit metrics for July 2025, with the net loss rate decreasing to 7.6% from 8.0% in July 2024. Net principal losses fell to $114 million from $120 million year-over-year. These developments provide a mixed picture for investors, with strong earnings performance but revenue challenges and strategic financial maneuvers.
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