Analyst Expectations For Synchrony Financial's Future

Synchrony Financial (NYSE:SYF) underwent analysis by 11 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	2	4	5	0	0
Last 30D	0	2	0	0	0
1M Ago	0	2	1	0	0
2M Ago	1	0	1	0	0
3M Ago	1	0	3	0	0

Analysts have set 12-month price targets for Synchrony Financial, revealing an average target of $65.91, a high estimate of $85.00, and a low estimate of $44.00. A 13.28% drop is evident in the current average compared to the previous average price target of $76.00.

Analyzing Analyst Ratings: A Detailed Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Synchrony Financial. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Donald Fandetti |Wells Fargo |Lowers |Overweight | $65.00|$70.00 | |John Pancari |Evercore ISI Group |Lowers |Outperform | $56.00|$64.00 | |Richard Shane |JP Morgan |Lowers |Overweight | $50.00|$76.00 | |Jeff Adelson |Morgan Stanley |Lowers |Equal-Weight | $44.00|$82.00 | |Donald Fandetti |Wells Fargo |Lowers |Overweight | $70.00|$85.00 | |Brian Foran |Truist Securities |Lowers |Hold | $65.00|$77.00 | |Alex Scott |Goldman Sachs |Lowers |Buy | $70.00|$82.00 | |Brian Foran |Truist Securities |Raises |Hold | $77.00|$72.00 | |Karl Shepard |RBC Capital |Raises |Sector Perform | $73.00|$70.00 | |David Rochester |Compass Point |Announces |Neutral | $70.00|- | |Mihir Bhatia |B of A Securities |Raises |Buy | $85.00|$82.00 |

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Synchrony Financial. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Synchrony Financial compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Synchrony Financial's stock. This examination reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Synchrony Financial's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Synchrony Financial analyst ratings.

Unveiling the Story Behind Synchrony Financial

Synchrony Financial, originally a spinoff of GE Capital's retail financing business, is the largest provider of private-label credit cards in the United States by both outstanding receivables and purchasing volume. Synchrony partners with other firms to market its credit products in their physical stores as well as on their websites and mobile applications. Synchrony operates through three segments: retail card (private-label and co-branded general-purpose credit cards), payment solutions (promotional financing for large ticket purchases), and CareCredit (financing for elective healthcare procedures).

Synchrony Financial: Financial Performance Dissected

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Positive Revenue Trend: Examining Synchrony Financial's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.88% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Synchrony Financial's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 19.81%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Synchrony Financial's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.0%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Synchrony Financial's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.63%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Synchrony Financial's debt-to-equity ratio is below the industry average. With a ratio of 1.01, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: What Are They?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.