Balanced Outlook: Hold Rating for Bread Financial Amid Mixed Performance Indicators

BTIG analyst Vincent Caintic has maintained their neutral stance on BFH stock, giving a Hold rating yesterday.

Vincent Caintic has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Bread Financial Holdings’ recent performance. The company has shown improvements in several key metrics, such as a slight decrease in end-of-period and average loans, and a reduction in the 30+ day delinquency rate. These indicators suggest that Bread Financial is managing its credit performance well, which is a positive sign for investors.
However, there are also reasons for caution. The net charge-off rate has increased slightly month-over-month, and while the net interest margin guidance is optimistic, it is only expected to rise nominally. Additionally, the company’s current CET1 ratio suggests that share repurchases are unlikely in the near term. These mixed signals lead to a Hold rating, as the potential for growth is balanced by these uncertainties.

In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $55.00 price target.

BFH’s price has also changed moderately for the past six months – from $66.350 to $54.480, which is a -17.89% drop .