Bank of America Securities analyst Mihir Bhatia has reiterated their bullish stance on SYF stock, giving a Buy rating today.
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Mihir Bhatia has given his Buy rating due to a combination of factors including Synchrony Financial’s strategic acquisition of the Lowe’s commercial co-branded credit card portfolio. This acquisition is expected to add approximately $800 million to their receivables, indicating a significant expansion in their business operations. The long-standing partnership with Lowe’s, spanning over 45 years, is seen as a testament to Synchrony’s ability to innovate and meet partner needs effectively.
Bhatia also adjusted the financial estimates for 2025 and 2026 to reflect this acquisition, slightly increasing the expected earnings per share for 2026. The company plans to reserve up to $50 million in the third quarter of 2025 in connection with this acquisition, which has been adjusted out of the adjusted EPS. With a current stock price of $69.25 and a price objective of $80.00, Bhatia sees potential for growth, reinforcing the Buy rating.
In another report released today, KBW also maintained a Buy rating on the stock with a $82.00 price target.
SYF’s price has also changed slightly for the past six months – from $67.850 to $69.990, which is a 3.15% increase.