Synchrony Financial stock price target raised to $85 by Wells Fargo

Investing.com - Wells Fargo raised its price target on Synchrony Financial (NYSE:SYF) to $85.00 from $80.00 on Thursday, while maintaining an Overweight rating on the financial services company. According to InvestingPro data, the stock currently trades at an attractive P/E ratio of 7.76x and boasts a "GREAT" overall financial health score.

The firm cited several positive factors supporting the higher valuation, including credit performance, capital position, and inflecting loan growth. Wells Fargo suggested investors use the recent relative weakness in the stock as a buying opportunity. This comes as the stock has shown remarkable strength, posting a 56.2% return over the past six months, with analyst targets ranging from $60 to $100.

Wells Fargo increased its 2025 earnings per share estimate by $0.61 to $9.42, reflecting both the $0.54 second-quarter earnings beat and expectations for faster share repurchases based on updated guidance.

The firm also raised its 2026 EPS estimate by $0.59 to $9.34, primarily due to improved credit outlook. Its 2027 EPS estimate remains unchanged at $10.75, which Wells Fargo noted is above consensus expectations.

The new $85 price target represents approximately 9 times Wells Fargo’s 2026 earnings per share estimate for Synchrony Financial.

In other recent news, Synchrony Financial reported strong earnings for the third quarter of 2025, surpassing analysts’ expectations. The company posted an earnings per share (EPS) of $2.86, significantly higher than the projected $2.21. Revenue also exceeded forecasts, reaching $3.82 billion compared to the anticipated $3.80 billion. Despite these positive financial results, Synchrony’s stock experienced a slight decline. Citizens reiterated its Market Outperform rating for Synchrony Financial, maintaining an $88.00 price target following the earnings release. The firm highlighted the company’s plans to enhance growth amid favorable portfolio trends. These recent developments indicate a mixed market reaction, with concerns about future growth plans affecting investor sentiment.

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