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Beyond The Numbers: 12 Analysts Discuss Synchrony Finl Stock

Author: Benzinga Insights | June 07, 2024 08:01am

12 analysts have shared their evaluations of Synchrony Finl (NYSE:SYF) during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 4 6 0 0
Last 30D 1 0 0 0 0
1M Ago 0 0 0 0 0
2M Ago 1 1 5 0 0
3M Ago 0 3 1 0 0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $47.83, a high estimate of $62.00, and a low estimate of $37.00. This upward trend is evident, with the current average reflecting a 15.64% increase from the previous average price target of $41.36.

price target chart

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of Synchrony Finl among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Vincent Caintic BTIG Announces Buy $60.00 -
Sanjay Sakhrani Keefe, Bruyette & Woods Raises Outperform $62.00 $45.00
Moshe Orenbuch TD Cowen Raises Buy $51.00 $49.00
Richard Shane JP Morgan Raises Neutral $46.00 $42.00
Mihir Bhatia B of A Securities Raises Neutral $44.00 $43.00
James Fotheringham BMO Capital Raises Market Perform $41.00 $40.00
Donald Fandetti Wells Fargo Raises Equal-Weight $45.00 $38.00
Mark Devries Barclays Raises Equal-Weight $37.00 $36.00
Bill Carcache Wolfe Research Raises Outperform $50.00 $36.00
Richard Shane JP Morgan Raises Neutral $42.00 $39.00
John Pancari Evercore ISI Group Raises Outperform $47.00 $45.00
David Scharf JMP Securities Raises Outperform $49.00 $42.00

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Synchrony Finl. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Synchrony Finl compared to the broader market.
  • Price Targets: Delving into movements, analysts provide estimates for the future value of Synchrony Finl's stock. This analysis reveals shifts in analysts' expectations over time.

For valuable insights into Synchrony Finl's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Synchrony Finl analyst ratings.

Discovering Synchrony Finl: A Closer Look

Synchrony Financial, originally a spinoff of GE Capital's retail financing business, is the largest provider of private-label credit cards in the United States by both outstanding receivables and purchasing volume. Synchrony partners with other firms to market its credit products in their physical stores as well as on their websites and mobile applications. Synchrony operates through three segments: retail card (private-label and co-branded general-purpose credit cards), payment solutions (promotional financing for large ticket purchases), and CareCredit (financing for elective healthcare procedures).

Key Indicators: Synchrony Finl's Financial Health

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Synchrony Finl's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 49.98%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Synchrony Finl's net margin excels beyond industry benchmarks, reaching 26.72%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Synchrony Finl's ROE excels beyond industry benchmarks, reaching 9.42%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Synchrony Finl's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.07% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Synchrony Finl's debt-to-equity ratio is below the industry average. With a ratio of 1.15, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: What Are They?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: SYF