RBC Capital has revised its price target for Synchrony Financial (SYF, Financial) to $56, down from a previous target of $73, while maintaining a Sector Perform rating for the company's stock. This adjustment comes as part of a comprehensive analysis previewing first-quarter results for consumer finance companies.
The firm anticipates that the quarter will demonstrate consistent performance, although fundamental trends are expected to show seasonal influence, leading to a reduction in loans and transaction volumes. Despite these challenges, RBC Capital projects that credit trends will remain stable. Notably, year-over-year improvements in delinquency rates are anticipated for most companies within the sector.
However, RBC Capital advises caution, highlighting that provisions for loan losses and reserve levels in the first quarter may indicate the effects of a more unpredictable economic environment. Investors should be aware of these potential impacts when evaluating Synchrony's upcoming financial disclosures.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 20 analysts, the average target price for Synchrony Financial (SYF, Financial) is $69.44 with a high estimate of $88.00 and a low estimate of $44.00. The average target implies an upside of 47.35% from the current price of $47.13. More detailed estimate data can be found on the Synchrony Financial (SYF) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Synchrony Financial's (SYF, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Synchrony Financial (SYF, Financial) in one year is $68.63, suggesting a upside of 45.63% from the current price of $47.125. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Synchrony Financial (SYF) Summary page.