Synchrony Financial (SYF) Reports Strong Q1 2025 Earnings

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Apr 22, 2025
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Summary:

  • Synchrony Financial (SYF, Financial) posts impressive Q1 2025 earnings, highlighting strong financial performance.
  • Analysts project an average price target with significant potential upside in the next year.
  • Company's strategic partnerships and increased dividends underscore growth potential.

Synchrony Financial (SYF) has reported robust earnings for the first quarter of 2025, showcasing a net income of $757 million, translating to $1.89 per share. The impressive performance reflects a 22.4% return on tangible common equity. Despite experiencing a 4% decrease in purchase volume to $41 billion, the company has successfully launched new partnerships and announced a 20% increase in dividends, raising it to $0.30 per share.

Wall Street Analysts' Forecast

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According to projections from 20 analysts, the average one-year price target for Synchrony Financial (SYF, Financial) stands at $68.19. The projections range from a high of $88.00 to a low of $44.00, with the average figure suggesting a potential upside of 42.65% from the current trading price of $47.80. Investors can explore more detailed estimate data on the Synchrony Financial (SYF) Forecast page.

Emphasizing the company’s promising outlook, the consensus recommendation from 22 brokerage firms assigns Synchrony Financial (SYF, Financial) an average rating of 2.2, indicating an "Outperform" status. This consensus falls within a rating scale that spans from 1, signaling a Strong Buy, to 5, indicating a Sell.

In alignment with the optimistic analyst projections, based on GuruFocus estimates, the GF Value for Synchrony Financial (SYF, Financial) is predicted to reach $68.58 within a year. This estimation points to an upside potential of 43.47% from SYF's current price of $47.80. The GF Value represents GuruFocus' calculation of the fair value at which the stock should ideally trade, considering historical trading multiples, former business growth, and anticipated future performance. Further detailed insights are accessible on the Synchrony Financial (SYF) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.