Synchrony Financial (SYF) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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Synchrony Financial’s acquisition of Ally Lending for $2.0 billion significantly expands its foothold in the home improvement and health and wellness sectors. However, the transaction presents potential financial risks as evidenced by the $201 million measurement period adjustments, which increased the goodwill to $252 million. This adjustment reflects the challenges in accurately valuing acquired assets and liabilities, potentially impacting financial stability if expected synergies and efficiencies do not materialize. Furthermore, the complexities in loan receivables valuation and credit loss provisions underscore the importance of effective integration and management to mitigate associated risks.
The average SYF stock price target is $77.80, implying 15.28% upside potential.
To learn more about Synchrony Financial’s risk factors, click here.
