Mihir Bhatia, an analyst from Bank of America Securities, maintained the Buy rating on Bread Financial Holdings. The associated price target remains the same with $75.00.
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Mihir Bhatia has given his Buy rating due to a combination of factors that indicate positive developments for Bread Financial Holdings. The company’s recent operating results for October showed a solid update in credit performance and a slight positive trend in loan growth, suggesting a credit turnaround is underway. Although loan growth is still slow, the rate of decline year-over-year is decreasing, indicating a potential inflection point.
Bhatia also noted that the net charge-off rate for October was better than expected, with a smaller increase than typical seasonal trends. This performance positions Bread Financial to potentially exceed its full-year loss guidance if the remaining months follow usual patterns. Additionally, while end-of-period receivables showed a year-over-year decline, the rate of decline is improving. These factors, along with adjusted earnings estimates and a maintained price objective, support the Buy rating.
According to TipRanks, Bhatia is a 4-star analyst with an average return of 7.1% and a 60.91% success rate. Bhatia covers the Financial sector, focusing on stocks such as Synchrony Financial, American Express, and Rocket Companies.