Synchrony Financial (SYF – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Mihir Bhatia from Bank of America Securities reiterated a Buy rating on the stock and has a $85.00 price target.
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Mihir Bhatia’s rating is based on Synchrony Financial’s improved credit performance and prudent underwriting practices. The company’s January metrics showed better credit trends than expected for the season, with net charge-off rates decreasing significantly from December. This improvement in loss rates outperformed historical averages for January, indicating strength in credit quality.
Additionally, Synchrony’s approach to more cautious underwriting is viewed positively as it balances slower loan growth with credit stability. The company’s decision to maintain this strategy until delinquency metrics show sustained improvement is seen as a prudent move. These factors, along with relatively stable delinquency rates, have contributed to Bhatia’s decision to maintain a Buy rating with a price objective of $85.00.
In another report released today, Barclays also maintained a Buy rating on the stock with a $79.00 price target.