Synchrony Financial Stock: Analyst Estimates & Ratings

Valued at a market cap of $25.4 billion, Stamford, Connecticut-based Synchrony Financial (SYF) operates in the consumer financial services industry. The company specializes in providing private-label and co-branded credit cards, installment loans, and banking products through partnerships with retailers, healthcare providers, and service providers across various industries in the U.S.

Shares of the consumer credit company have significantly outperformed the broader market over the past 52 weeks. SYF has jumped 120.2% over this time, while the broader S&P 500 Index ($SPX) has rallied 35.5%. In 2024, shares of SYF are up 70.5%, compared to SPX’s 25.5% gain on a YTD basis.

Focusing more closely, Synchrony Financial has also outpaced the Financial Select Sector SPDR Fund's (XLF) 46.7% return over the past 52 weeks and a 32.3% YTD gain. 

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Shares of Synchrony Financial climbed 6.1% on Oct. 16, driven by strong Q3 earnings that exceeded analyst expectations, with adjusted EPS reaching $1.94. The company reported a 5.7% increase in net interest income to $4.6 billion, supported by higher interest and fees on loans and a growing loan receivables portfolio. Additionally, Synchrony raised its full-year EPS guidance to $8.45-$8.55 and an improved efficiency ratio signaled robust financial health and efficient cost management, further encouraging positive market sentiment.

For the current fiscal year, ending in December, analysts expect SYF’s EPS to grow 25.6% year-over-year to $2.51. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion. 

Among the 21 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” seven “Holds,” and two “Strong Sells.”

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This configuration is slightly less bullish than three months ago, with 12 “Strong Buy” ratings on the stock.

On  Nov. 12, Bank of America analyst Mihir Bhatia raised Synchrony Financial's price target to $75, maintaining a “Buy" rating due to increased investor optimism around regulatory relief, lower tax rates, and potential sector growth following the election.

As of writing, SYF is trading above the mean price target of $61.05. The Street-high price target of $71, implies a potential upside of just 9% from the current price.  

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.