Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - HSBC upgraded Synchrony Financial (NYSE:SYF) from Hold to Buy on Friday, raising its price target to $81.00 from $73.00. The company, currently trading at $70.99 with a market cap of $26.4 billion, has shown strong momentum with a 54% return over the past six months. According to InvestingPro analysis, the stock appears fairly valued based on its proprietary Fair Value model.
The bank cited Synchrony’s recent share underperformance as creating a buying opportunity, noting that unlike competitors American Express (NYSE:AXP) and Capital One (NYSE:COF), SYF shares have not experienced PE multiple expansion despite positive earnings revisions since late 2024. The stock currently trades at an attractive P/E ratio of 8.6x, with InvestingPro data showing five analysts having revised their earnings upward for the upcoming period.
HSBC expects Synchrony’s credit quality to remain resilient while loan and revenue momentum improves in 2026, according to the research note.
The firm highlighted Synchrony’s significant capacity to return capital to shareholders, forecasting net share buybacks equivalent to approximately 27% of current market capitalization from the second half of 2025 through 2027.
The new $81 price target implies approximately 14% upside potential, with Synchrony currently trading at 7.9 times estimated 2026 earnings per share.
In other recent news, Synchrony Financial has completed the acquisition of Versatile Credit, a consumer financing software provider, although financial terms were not disclosed. Additionally, Synchrony announced the appointment of Deborah Ellinger to its Board of Directors, effective October 1, 2025. Ellinger brings experience from her role as a senior advisor at Boston Consulting Group. In terms of financial outlook, JMP Securities raised its price target for Synchrony Financial to $88 from $77, maintaining a Market Outperform rating. This adjustment comes after positive management commentary regarding credit performance. Furthermore, Synchrony has entered a partnership with Audibel to offer financing options for hearing care services and devices. The agreement will utilize Synchrony’s CareCredit credit card and installment loan solutions across Audibel’s extensive network. These developments reflect Synchrony’s ongoing strategic initiatives and partnerships.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.