Analyst Moshe Orenbuch of TD Cowen maintained a Buy rating on Synchrony Financial, boosting the price target to $85.00.
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Moshe Orenbuch has given his Buy rating due to a combination of factors that highlight Synchrony Financial’s strong performance and potential for growth. The company reported second-quarter earnings per share that exceeded both the analyst’s and consensus estimates, driven by a larger-than-expected reserve release and lower-than-anticipated losses. Additionally, net interest income was higher than expected, supported by a stronger net interest margin, which offset higher risk-sharing arrangements and lower other income.
Despite a reduction in forecasted asset growth for the second half of the year, Synchrony Financial is showing signs of portfolio growth. The analyst notes that the company is poised for a recovery in growth, aided by modestly improved spending, moderating payment rates, and the introduction of new products. Furthermore, the analyst anticipates an acceleration in growth by 2026, bolstered by new product offerings with major partners and the relaunch of the Walmart card. Consequently, the price target has been adjusted to $85, reflecting confidence in the company’s future earnings potential.
In another report released on July 17, Citizens JMP also maintained a Buy rating on the stock with a $77.00 price target.