Hold Rating Maintained as Limited Upside Persists Despite Modest EPS Upgrades and Buybacks

Morgan Stanley analyst Jeffrey Adelson assigned a Hold rating on Synchrony Financial today and set a price target of $84.00.

Jeffrey Adelson has given his Hold rating due to a combination of factors including modestly improved earnings expectations and a valuation that already reflects much of this upside. He slightly raised his 2026 and 2027 EPS forecasts, mainly driven by an acceleration in share repurchases and a small improvement in expected credit losses, which supports a marginally higher price target but not a more bullish stance.

At the same time, Adelson’s updated target price of $84, based on applying an 8x P/E multiple to the new 2027 EPS estimate, implies only limited upside from the current share price of $78.58. This relatively constrained risk‑reward profile, even after factoring in capital returns and credit trends, leads him to maintain a neutral, or Hold, recommendation rather than upgrade the stock.

In another report released on April 10, RBC Capital also maintained a Hold rating on the stock with a $85.00 price target.