Synovus Financial stock rating upgraded by Raymond James on strong results

Published 18/07/2025, 09:38
Synovus Financial stock rating upgraded by Raymond James on strong results

Investing.com - Raymond (NSE:RYMD) James upgraded Synovus Financial (NYSE:SNV) from Market Perform to Outperform with a price target of $62.00 following the company’s second-quarter 2025 results. The $7.47B market cap bank currently maintains a "Buy" consensus among analysts, with InvestingPro data showing 10 analysts recently revising their earnings estimates upward.

The upgrade comes after Synovus reported quarterly results that exceeded both Raymond James’ forecasts and consensus estimates, prompting the company to increase the majority of its 2025 outlook. The company’s overall financial health is rated as "GOOD" by InvestingPro’s comprehensive scoring system.

Raymond James acknowledged it had misjudged Synovus’ loan growth momentum, progress on fee income, and the impact of credit metrics from de-risking efforts over the past few years.

Synovus shares have increased 40.7% since their most recent low on April 8, 2025, outperforming the BKX (37.1%), BANK (25.8%), and S&P 500 (26.4%) indexes during the same period.

Despite trading at a discount to peers on both P/E and TBV basis, Raymond James sees continued upside potential for Synovus, citing stronger projected positive operating leverage and increased scarcity value as bank M&A accelerates.

In other recent news, Synovus Financial reported a robust performance for the second quarter of 2025, surpassing expectations with earnings per share (EPS) of $1.48 against a forecast of $1.26, marking a 17.46% positive surprise. Revenue also exceeded projections, reaching $593.7 million compared to the expected $586.68 million. The company reported a 28% year-over-year EPS growth and a slight expansion in its net interest margin to 3.37%. Loan production reached its highest level since the third quarter of 2022, with the company anticipating a 4-6% loan growth for the year.

Additionally, Keefe, Bruyette & Woods upgraded Synovus Financial’s stock rating from Market Perform to Outperform, raising its price target to $65.00, citing strong end-of-period loan growth and improved fee income. DA Davidson also increased its price target to $63.00, maintaining a Buy rating, and noted that the bank’s second-quarter performance led to an upward revision of its 2025 earnings per share estimate. Both firms highlighted a benign credit environment and an improved growth outlook as positive factors for the bank. These recent developments reflect Synovus Financial’s ongoing strategic initiatives and strong financial performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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