Wells Fargo has revised its price target for Synchrony Financial (SYF, Financial), lowering it to $65 from the previous target of $70, while maintaining an Overweight rating. This adjustment comes amid a slight decline in loan growth year-over-year in the first quarter, influenced by tighter credit conditions and cautious consumer behavior.
Despite these challenges, Wells Fargo remains optimistic about Synchrony's credit metrics, which continue to show positive trends. Additionally, card spending has remained stable through April, contributing to the firm's positive outlook.
Currently, there are no plans to reduce Purchase Price Protection Credit (PPPC) Annual Percentage Rate (APR) mitigants. However, Wells Fargo notes that Synchrony may consider enhancing value propositions and promotional activities as strategic options moving forward.
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 $63.19 with a high estimate of $88.00 and a low estimate of $42.00. The average target implies an upside of 30.12% from the current price of $48.56. 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 41.23% from the current price of $48.56. 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.
