Morgan Stanley analyst Jeffrey Adelson maintained a Hold rating on Synchrony Financial (SYF – Research Report) today and set a price target of $48.00.
Jeffrey Adelson has given his Hold rating due to a combination of factors affecting Synchrony Financial’s outlook. Despite a positive adjustment in the 2025 earnings per share (EPS) estimate, driven by reduced net charge-offs (NCOs) and increased share buybacks, there are concerns about potential macroeconomic and credit challenges towards the end of the year. The company’s first-quarter performance showed better-than-expected credit results, with NCOs coming in below estimates, and a significant reserve release contributing to the EPS beat.
However, growth remains a concern, as the company has not observed any consumer spending acceleration, and loan growth was weaker than anticipated. Additionally, while the company has improved its NCO guidance, there are no immediate plans to reverse certain credit policies, and discussions with retailers regarding potential changes have yet to begin. These mixed signals, along with macroeconomic uncertainties, underpin the decision to maintain a Hold rating.
Adelson covers the Financial sector, focusing on stocks such as American Express, Synchrony Financial, and Bread Financial Holdings. According to TipRanks, Adelson has an average return of -6.0% and a 32.79% success rate on recommended stocks.
In another report released on April 14, RBC Capital also maintained a Hold rating on the stock with a $56.00 price target.