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Investing.com - TD Cowen has raised its price target on Synchrony Financial (NYSE:SYF) to $91.00 from $90.00 while maintaining a Buy rating on the stock. The $26.91 billion financial services company has demonstrated robust performance, with a strong financial health score according to InvestingPro data.
The firm described Synchrony’s recent quarterly results as positive, noting the company delivered a strong performance despite some tempering due to mostly lower revenue guidance. Trading at an attractive P/E ratio of 7.76 and offering a 1.66% dividend yield, Synchrony has shown impressive momentum with a 56.2% price return over the past six months.
TD Cowen indicated that the lower revenue guidance was not surprising given where loan growth has been tracking, while credit performance has continued to be strong.
The analyst report highlighted that Synchrony now has a clearer near-term plan regarding how much it wants to unwind credit actions to drive growth going forward.
While high payment rates remain a headwind to balance growth, TD Cowen expects this to moderate as Synchrony continues to open its credit box and will benefit from the ramp of the Walmart portfolio in 2026.
In other recent news, Synchrony Financial reported strong earnings for the third quarter of 2025, with earnings per share of $2.86 surpassing analyst expectations of $2.21. The company’s revenue also exceeded projections, coming in at $3.82 billion compared to the anticipated $3.80 billion. Despite these positive results, the stock experienced a decline, attributed to investor concerns over lower net revenue guidance for 2025 and potential misses in 2026 growth expectations. BTIG has reiterated its Buy rating on Synchrony Financial, maintaining a price target of $100.00, despite the market’s negative reaction post-earnings. Wells Fargo increased its price target for the company to $85.00 from $80.00, citing strong credit performance and loan growth as supporting factors. Citizens also reiterated its Market Outperform rating with an $88.00 price target following the earnings release. These developments reflect varying analyst perspectives on the company’s financial outlook and growth strategies.
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