Positive Outlook on Synchrony Financial: Strong Performance and Strategic Initiatives Justify Buy Rating

TD Cowen analyst Moshe Orenbuch has maintained their bullish stance on SYF stock, giving a Buy rating on April 16.

Moshe Orenbuch’s rating is based on Synchrony Financial’s strong financial performance and strategic initiatives. The company reported a first-quarter earnings per share that exceeded expectations, primarily due to lower-than-anticipated losses and higher recoveries, along with a slightly larger reserve release. These factors contributed to a positive outlook on profitability, despite some challenges in net interest income.
Additionally, Synchrony Financial’s management has demonstrated a commitment to shareholder value through a robust share repurchase program, which exceeded expectations. The company is also poised to leverage excess earnings to enhance card program value propositions and deepen customer relationships, addressing investor concerns about portfolio growth. These strategic moves, coupled with a stable macroeconomic outlook, underpin the Buy rating with a price target of $68.

According to TipRanks, Orenbuch is a top 100 analyst with an average return of 20.1% and a 65.23% success rate. Orenbuch covers the Financial sector, focusing on stocks such as SLM, Synchrony Financial, and OneMain Holdings.