EUR/USD likely to find a peak near 1.25: UBS
On Wednesday, Synchrony Financial (NYSE:SYF) retained its Outperform rating by Keefe, Bruyette & Woods, with the firm maintaining a $62.00 price target for the company's stock. The decision follows Synchrony Financial's third-quarter results for 2024, which led to a revision of the earnings per share (EPS) estimate for the year.
The analyst at Keefe, Bruyette & Woods adjusted the 2024 EPS forecast upward to $8.50, an increase from the previous estimate of $7.70. This change reflects the company's performance in the recent quarter and the decision not to implement a late fee rule in the fourth quarter of 2024. The forecast for the subsequent years, however, remains unchanged, with 2025 and 2026 EPS estimates standing at $5.52 and $7.48 respectively.
The analyst's statement highlighted the rationale behind maintaining the current price target and rating: "Following 3Q24 results, we are raising our 2024 EPS estimate to $8.50 (from $7.70) to reflect the beat this quarter along with removing the late fee rule implementation in 4Q24, while maintaining our 2025/2026 EPS estimates of $5.52 and $7.48, respectively. We're maintaining our $62 price target and Outperform rating."
Synchrony Financial's stock performance and future outlook are thus expected to remain robust, according to Keefe, Bruyette & Woods. The firm's analysis is based on the latest quarterly results and the anticipated impact of regulatory decisions on the company's financials.
Investors and market watchers will likely keep a close eye on Synchrony Financial's progress as it navigates the remainder of 2024 and moves into the next fiscal years, with the maintained Outperform rating signaling continued confidence in the company's potential for growth and profitability.
In other recent news, Synchrony Financial reported an adjusted earnings per share (EPS) of $1.94, surpassing both BofA's and the consensus estimates. This performance beat was primarily due to a lower provision expense and exceeded net interest income expectations. In light of these results, BofA Securities upgraded its price target for Synchrony Financial to $61 from the previous $54, maintaining a Buy rating on the stock.
Synchrony Financial has revised its 2024 guidance due to the postponement of the late fee rule implementation, a move that is expected to significantly boost estimates for 2024 and possibly into 2025. The company's credit trends are reportedly evolving in line with expectations.
Despite falling short on total deposits for the quarter, Synchrony Financial's strong earnings performance appears to have dominated investor focus. CEO Brian Doubles expressed confidence in the company's business model and strategic execution.
InvestingPro Insights
Synchrony Financial's recent performance aligns with several key metrics and insights from InvestingPro. The company's P/E ratio of 7.83 and adjusted P/E ratio of 6.91 for the last twelve months as of Q2 2024 suggest that the stock is trading at a relatively low valuation compared to its earnings. This is further supported by an InvestingPro Tip indicating that SYF is "Trading at a low P/E ratio relative to near-term earnings growth."
The company's financial health appears strong, with a revenue of $8,777 million USD for the last twelve months as of Q2 2024, representing a growth of 14.02%. This robust performance is reflected in the stock's price movement, with InvestingPro data showing a remarkable 84.55% total return over the past year and a 34.98% return over the last six months.
An InvestingPro Tip notes that Synchrony Financial "Has maintained dividend payments for 9 consecutive years," which may appeal to income-focused investors. The current dividend yield stands at 1.88%, with a dividend growth of 8.7% in the last twelve months as of Q2 2024.
These insights complement the analyst's positive outlook and Outperform rating. For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Synchrony Financial, providing a deeper understanding of the company's financial position and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.