Analyst Jeffrey Adelson of Morgan Stanley maintained a Hold rating on Synchrony Financial, boosting the price target to $72.00.
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Jeffrey Adelson has given his Hold rating due to a combination of factors influencing Synchrony Financial’s performance. Although the company’s earnings per share (EPS) for 2025 and 2026 are projected to increase, largely due to improved net interest margin (NIM) and lower net charge-offs (NCOs), there are concerns regarding sluggish loan growth and weaker top-line guidance. The EPS beat in the second quarter of 2025 was primarily driven by a reserve release, which raises questions about the sustainability of earnings growth.
Despite these challenges, there are positive indicators such as strong credit performance and management’s intention to expand growth and widen the credit box. Additionally, the net interest margin is expected to improve significantly in the latter half of the year, which could enhance loan yield expansion. However, the anticipated increase in expenses, partly due to upcoming initiatives like the Walmart/OnePay launch, could offset some of these gains. These mixed signals contribute to the Hold rating, suggesting that while there are growth opportunities, potential risks and uncertainties remain.
According to TipRanks, Adelson is an analyst with an average return of -8.6% and a 42.47% success rate. Adelson covers the Financial sector, focusing on stocks such as SLM, Bread Financial Holdings, and Synchrony Financial.
In another report released on July 14, RBC Capital also maintained a Hold rating on the stock with a $75.00 price target.