Synovus Financial: Hold Rating Amid Positive Earnings and Cautious Future Outlook

Analyst Manan Gosalia of Morgan Stanley maintained a Hold rating on Synovus (SNV – Research Report), boosting the price target to $50.00.

Manan Gosalia has given his Hold rating due to a combination of factors related to Synovus’s recent financial performance and future projections. The company’s first-quarter earnings per share exceeded expectations, primarily due to lower provisions, increased net interest income, and reduced expenses. However, despite the positive earnings surprise, the management’s updated guidance for the full year 2025 reflects a slight reduction in the expected revenue growth range, which suggests a cautious outlook.
Additionally, Synovus’s operating leverage is expected to improve, and the company has demonstrated strong loan growth, particularly in wholesale lending. Nevertheless, there are concerns about the macroeconomic environment, and the company’s sensitivity to interest rate changes could pose challenges. While the guidance update was generally positive, the conservative approach to future loan growth and the potential impact of rate cuts have led to a Hold rating, indicating a balanced view of the stock’s potential risks and rewards.

Gosalia covers the Financial sector, focusing on stocks such as Comerica, Commerce Bancshares, and Fifth Third Bancorp. According to TipRanks, Gosalia has an average return of 5.8% and a 47.37% success rate on recommended stocks.

In another report released on April 17, Evercore ISI also maintained a Hold rating on the stock with a $52.00 price target.