In a report released today, Ben Chittenden from Oppenheimer maintained a Hold rating on Synchrony Financial (NYSE: SYF). The company’s shares closed on Friday at $29.85, close to its 52-week low of $28.33.
Chittenden wrote:
“When AXP lost Costco it marked an inflection point even though management felt it was a one-off event. We believe that the WMT loss marks a similar inflection point for SYF even though they too view it as a one-off event. We now think that it’s very likely that SYF loses Sam’s Club, which means additional profitability headwinds and likely a need to get more aggressive in general purpose. Even if they don’t lose Sam’s Club, they will likely have to reduce their economic hurdles to keep the relationship and then we wonder if they will regret giving up WMT. Either way, it suggests lower go-forward profitability. Thus, while the stock is cheap, we still can’t get overly excited about it.”
According to TipRanks.com, Chittenden is a 3-star analyst with an average return of 1.6% and a 54.8% success rate. Chittenden 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 $39.55, implying a 32.5% upside from current levels. In a report issued on August 3, UBS also upgraded the stock to Hold with a $33 price target.
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The company has a one-year high of $40.59 and a one-year low of $28.33. Currently, Synchrony Financial has an average volume of 5.73M.
Based on the recent corporate insider activity of 113 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 operates as a holding company, which 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.
