Zacks Investment Research Upgrades Synchrony Financial (SYF) to “Buy”

Synchrony Financial (NYSE:SYF) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Monday. The brokerage presently has a $27.00 price objective on the financial services provider’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 14.75% from the company’s previous close.

According to Zacks, “Synchrony Financial is well-positioned for long-term growth on the back of increasing revenues, aided by a rapidly rising interest income as well as inorganic growth strategies. Its concerted efforts in forging alliances and effecting acquisitions are likely to drive the shares going forward. Moreover, its Retail Card platform consistently performed well over the past several quarters. Shares of Synchrony Financial’s have lost in a year’s time, wider than its industry’s decline. However, it has witnessed 2018 and 2019 earnings estimates move north over the last 30 days. The company has been witnessing a steep rise in expenses since 2013, which has been weighing on its bottom line. Its high allowance for loss remains another concern.”

Several other equities analysts also recently commented on SYF. ValuEngine upgraded Synchrony Financial from a “strong sell” rating to a “sell” rating in a research report on Friday, December 7th. Oppenheimer restated a “hold” rating on shares of Synchrony Financial in a research report on Monday, October 22nd. Morgan Stanley lowered their price objective on Synchrony Financial from $35.00 to $32.00 and set an “equal weight” rating on the stock in a research report on Monday, November 5th. TheStreet downgraded Synchrony Financial from a “b-” rating to a “c+” rating in a research report on Monday, November 19th. Finally, Stephens downgraded Synchrony Financial from an “equal weight” rating to a “sell” rating and set a $26.00 price objective on the stock. in a research report on Friday, November 2nd. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating and eight have given a buy rating to the stock. The stock has an average rating of “Hold” and an average price target of $35.71.

NYSE SYF opened at $23.53 on Monday. The firm has a market cap of $17.32 billion, a P/E ratio of 8.98, a P/E/G ratio of 0.65 and a beta of 1.03. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 1.70. Synchrony Financial has a fifty-two week low of $23.32 and a fifty-two week high of $40.59.

Synchrony Financial (NYSE:SYF) last released its earnings results on Friday, October 19th. The financial services provider reported $0.91 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.80 by $0.11. Synchrony Financial had a return on equity of 17.90% and a net margin of 13.70%. The company had revenue of $4.21 billion for the quarter, compared to the consensus estimate of $4.18 billion. During the same period in the previous year, the business earned $0.70 earnings per share. On average, equities research analysts anticipate that Synchrony Financial will post 3.54 EPS for the current year.

Several institutional investors have recently made changes to their positions in SYF. Ayalon Holdings Ltd. purchased a new stake in shares of Synchrony Financial in the third quarter worth about $140,000. Brown Brothers Harriman & Co. purchased a new stake in shares of Synchrony Financial in the third quarter worth about $140,000. Campbell & CO Investment Adviser LLC purchased a new stake in shares of Synchrony Financial in the third quarter worth about $211,000. Hollencrest Capital Management purchased a new stake in shares of Synchrony Financial in the third quarter worth about $219,000. Finally, First Interstate Bank lifted its position in shares of Synchrony Financial by 110.7% in the third quarter. First Interstate Bank now owns 7,187 shares of the financial services provider’s stock worth $223,000 after buying an additional 3,776 shares in the last quarter. Institutional investors and hedge funds own 84.28% of the company’s stock.

About Synchrony Financial

Synchrony Financial operates as a consumer financial services company in the United States. The company offers private label credit cards, dual cards, general purpose co-branded credit cards, and small and medium-sized business credit products; and promotional financing for consumer purchases, such as private label credit cards and installment loans.

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