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Investing.com - JMP Securities maintained its Market Outperform rating and $77.00 price target on Synchrony Financial (NYSE:SYF) following the company’s second-quarter 2025 results. According to InvestingPro data, analyst targets for the company range from $60 to $100, with the stock currently trading slightly above its Fair Value.
Synchrony Financial shares rose approximately 1.8% on Tuesday while the S&P 500 remained flat. The stock movement came after the company reported improving credit trends in its underlying portfolio for the second quarter.
JMP highlighted a reversal of what it considered "overly cautious reserve levels" from the first quarter, viewing this as a positive indicator for other lenders that may also be over-reserved entering the second half of the year. The firm specifically mentioned Bread Financial Holdings as potentially benefiting from similar trends. InvestingPro analysis reveals that Synchrony maintains a "GREAT" overall financial health score, with particularly strong ratings in profit and price momentum metrics. Get access to 10+ additional exclusive ProTips and comprehensive financial analysis with InvestingPro.
While Synchrony trimmed its portfolio growth outlook for the year, JMP attributed this primarily to a higher-than-expected payment rate, partly due to an increased mix of super prime borrowers following two years of credit tightening.
JMP maintained its $77 price target, representing approximately 9 times the firm’s updated 2026 earnings per share estimate for Synchrony Financial.
In other recent news, Synchrony Financial reported strong earnings for the second quarter of 2025, with earnings per share (EPS) reaching $2.50. This figure exceeded analyst expectations of $1.79 by 39.66%. However, the company’s revenue did not meet forecasts, coming in at $3.65 billion compared to the anticipated $3.68 billion, marking a shortfall of 0.82%. Despite the earnings beat, Synchrony Financial experienced a slight decline in its stock during premarket trading. Analysts from various firms have noted these developments, providing insights into the company’s financial performance. The earnings results and revenue figures are crucial for investors assessing the company’s recent performance. These updates reflect the latest developments surrounding Synchrony Financial.
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