In a report released today, Jeffrey Adelson from Morgan Stanley maintained a Sell rating on Bread Financial Holdings (BFH – Research Report), with a price target of $36.00.
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Jeffrey Adelson has given his Sell rating due to a combination of factors impacting Bread Financial Holdings. Despite a strong earnings performance in the first quarter of 2025, with earnings per share exceeding expectations and improved net charge-offs, Adelson remains cautious about the company’s future. The primary concern stems from uncertainties in the macroeconomic environment, including potential tariff impacts and a modest rise in unemployment, which could adversely affect subprime and retail credit card net charge-offs.
Additionally, while the company has been proactive with share buybacks, which have positively influenced earnings per share, the overall loan growth outlook remains weak. The company has revised its loan growth projections downward, indicating a contraction, which could limit revenue growth. These factors, combined with the uncertain economic outlook, have led Adelson to maintain a conservative stance, justifying the Sell rating.
According to TipRanks, Adelson is an analyst with an average return of -6.0% and a 32.79% success rate. Adelson covers the Financial sector, focusing on stocks such as Bread Financial Holdings, American Express, and Synchrony Financial.