Oppenheimer analyst Dominick Gabriele reiterated a Buy rating on Synchrony Financial (SYF) yesterday and set a price target of $42. The company’s shares closed on Thursday at $33.34.
Gabriele noted:
“SYF reported “core” EPS of $1.00 vs. our/consensus $0.96/$0.89 estimates. The beat came mainly from provision being better than expectations. The PayPal portfolio isn’t largely contributing to NCOs until 3Q19/4Q19 as it is currently marked. Core receivables continue to drive higher YoY this quarter at 17% (ex-WMT). SYF continues to believe the underlying loan growth is likely between 5% and 7% after PayPal laps, and we are modeling 6%. The biggest changes to our estimates in 2019/2020 relate to yields slightly lower related to PayPal. We think there is some offset related to less pressure on incremental funding costs. We’re reducing our PT to $42 from $43 as we lowered our 2020FYE, yet we’re above consensus and see continued momentum.”
According to TipRanks.com, Gabriele is a 2-star analyst with an average return of 1.9% and a 66.7% success rate. Gabriele covers the Financial sector, focusing on stocks such as Discover Financial Services, Credit Acceptance Corp, and Santander Consumer USA.
Synchrony Financial has an analyst consensus of Moderate Buy, with a price target consensus of $36.
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Synchrony Financial’s market cap is currently $23.96B and has a P/E ratio of 8.89. The company has a Price to Book ratio of 1.63.
Based on the recent corporate insider activity of 181 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SYF in relation to earlier this year.
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Synchrony Financial engages in the provision of consumer financial services. It operates through three sales platforms: Retail Card, Payment Solutions, and CareCredit. The Retail Card platform is a provider of private label credit cards, and also provides Dual Cards and small-and medium-sized business credit products.
