Morgan Stanley has revised its price target for Synchrony Financial (SYF, Financial), increasing it from $44 to $48, while maintaining an Equal Weight rating on the stock. This adjustment follows Synchrony’s recent performance, where it surpassed the firm’s earnings per share expectations, attributed to favorable net charge-offs and reserve releases.
The financial services company has also reduced its net charge-off guidance for 2025 by 5.8% to 6%. Despite this, overall growth is considered weak according to the analyst. However, these developments have prompted Morgan Stanley to elevate its earnings projections for both 2025 and 2026.
Notably, these updated forecasts still fall short of consensus estimates by approximately 5% for 2026, primarily due to macroeconomic factors. Additionally, Synchrony has not experienced any advance in demand or earnings beyond expectations, often referred to as pullforward.
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 $68.19 with a high estimate of $88.00 and a low estimate of $44.00. The average target implies an upside of 41.14% from the current price of $48.31. 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 $68.58, suggesting a upside of 41.96% from the current price of $48.31. 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.
