Synchrony Financial (SYF – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Mihir Bhatia from Bank of America Securities maintained a Buy rating on the stock and has a $74.00 price target.
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Mihir Bhatia has given his Buy rating due to a combination of factors including Synchrony Financial’s recent success in securing a partnership with Walmart to issue co-branded and private label credit cards. This strategic win is anticipated to enhance loan growth, even though the specifics of the loss and revenue sharing agreement remain to be clarified. The partnership marks a significant achievement for Synchrony, as it regains a major retail portfolio that it had previously lost, showcasing the company’s strong capabilities in the private label credit card market.
Bhatia also highlights Synchrony’s disciplined credit metrics and the potential for pricing actions to bolster near-term earnings. The attractive capital return potential further supports the positive outlook. With a price objective set at $74, the current valuation suggests room for growth, reinforcing the Buy recommendation.
Bhatia covers the Financial sector, focusing on stocks such as Synchrony Financial, Capital One Financial, and American Express. According to TipRanks, Bhatia has an average return of 9.1% and a 62.98% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $62.00 price target.