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Synovus Financial Outlook: Balancing Growth Potential with Cost Management Concerns

Synovus Financial Outlook: Balancing Growth Potential with Cost Management Concerns

Morgan Stanley analyst Manan Gosalia has maintained their neutral stance on SNV stock, giving a Hold rating on July 11.

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Manan Gosalia has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Synovus’s financial outlook. The company’s second-quarter earnings per share exceeded expectations, driven by lower provisions and increased fee income, which is a positive indicator. Additionally, Synovus has updated its revenue guidance for 2025, suggesting an optimistic view on future growth, with an implied increase in operating leverage.
However, despite these positive developments, Gosalia remains cautious. The unchanged expense guidance and the expectation of higher expenses due to strategic hiring suggest potential cost pressures. While loan growth has shown strong momentum, leading to increased revenue forecasts, the decision to be conservative on buybacks indicates a measured approach to capital management. These mixed signals contribute to the Hold rating, as the potential for growth is balanced by the need for careful cost management.

According to TipRanks, Gosalia is a 4-star analyst with an average return of 8.7% and a 59.12% success rate. Gosalia covers the Financial sector, focusing on stocks such as Cadence Bank, M&T Bank, and Commerce Bancshares.

In another report released on July 11, KBW also maintained a Hold rating on the stock with a $58.00 price target.

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