Bank of America Securities analyst Mihir Bhatia reiterated a Buy rating on Bread Financial Holdings yesterday and set a price target of $74.00.
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Mihir Bhatia has given his Buy rating due to a combination of factors related to Bread Financial Holdings’ recent performance metrics. Despite experiencing sluggish loan growth, the company has shown improvement in its credit loss metrics, which aligns with its ongoing strategy of consumer self-regulation and gradual credit normalization. This improvement in credit losses, alongside the initiation of a stock buyback program, supports the Buy rating.
Bhatia notes that while the net charge-off rate saw a modest decrease, it was still a positive indicator of the company’s financial health. Additionally, the stability in delinquency rates suggests that near-term loss performance is likely to remain under control. Although end-of-period receivables showed a year-over-year decline, the month-over-month increase indicates some resilience. These factors, combined with a price objective that is higher than the current stock price, underpin the Buy recommendation.
In another report released today, KBW also maintained a Buy rating on the stock with a $88.00 price target.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BFH in relation to earlier this year.