In a report released today, Moshe Orenbuch from TD Cowen maintained a Hold rating on Bread Financial Holdings (BFH – Research Report), with a price target of $55.00.
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Moshe Orenbuch has given his Hold rating due to a combination of factors affecting Bread Financial Holdings. The company’s recent earnings report showed a positive performance, with earnings per share exceeding both the analyst’s and market expectations. This was largely due to lower-than-anticipated provisions and better revenue from net interchange and changes in paper statement pricing. However, despite these positive results, the company has slightly lowered its guidance for 2025, reflecting uncertainties in the macroeconomic environment, such as slower retail sales growth and slightly higher inflation.
Management’s cautious outlook is further influenced by the current macroeconomic uncertainties, which have led to a conservative approach towards future growth opportunities and share repurchases. While there are favorable credit trends and positive consumer behavior, the company remains at the lower end of its targeted capital range, suggesting a careful stance in the near term. These mixed signals of strong current performance but cautious future outlook contribute to the Hold rating, indicating that while the stock is performing well, potential risks and uncertainties warrant a wait-and-see approach.
Orenbuch covers the Financial sector, focusing on stocks such as Bread Financial Holdings, SLM, and Synchrony Financial. According to TipRanks, Orenbuch has an average return of 20.1% and a 65.23% success rate on recommended stocks.
In another report released today, Jefferies also maintained a Hold rating on the stock with a $50.00 price target.