Synchrony Financial Reports Solid Performance and Analyst Ratings
Stamford, Connecticut-based Synchrony Financial (SYF) is a leading consumer financial services firm boasting one of the industry’s most comprehensive digitally-enabled product suites. With a market capitalization of $20.5 billion, the company offers various credit products, including credit cards, commercial credit options, and consumer installment loans through partnerships with national and regional retailers, local merchants, and manufacturers.
Stock Performance: Yearly Gains and Mixed Results
Over the past year, shares of this consumer credit firm have outperformed the broader market. SYF has increased by 21.6%, while the S&P 500 Index ($SPX) has risen nearly 9.2%. However, in 2025, SYF has recorded a decline of 14.7%, contrasting with SPX’s 3.7% drop thus far this year.
Examining SYF more closely, its outperformance is also notable against the Financial Select Sector SPDR Fund (XLF), which has risen by approximately 20.6% in the past year. Yet, the ETF’s 3.2% returns this year are better than SYF’s double-digit losses during the same timeframe.
Growth Factors: Loans and Consumer Sentiment
Synchrony’s robust performance is driven by interest on credit card balances and consumer loans. With the Federal Reserve halting rate cuts, loan yields are expected to rise, enhancing net interest income. Despite fluctuations in consumer sentiment, spending remains stable in essential sectors like travel and healthcare, supported by a strong labor market that aids repayment capabilities. Furthermore, strategic acquisitions and partnerships are advancing Synchrony’s digital transformation and product diversification, particularly the rapid growth of the CareCredit platform within healthcare.
On April 22, SYF shares rose over 2% following the announcement of its Q1 results. The company’s earnings per share (EPS) of $1.89 surpassed Wall Street expectations of $1.63, although its net interest income of $4.5 billion fell short of the predicted $4.6 billion.
Analyst Projections and Ratings
For the current fiscal year ending in December, analysts anticipate a 16.7% increase in SYF’s EPS to $7.69 on a diluted basis. The company’s earnings surprise history is commendable, having exceeded consensus estimates in each of the last four quarters.
Among the 23 analysts covering SYF, the consensus rating stands at “Moderate Buy.” This includes 13 “Strong Buy” ratings, one “Moderate Buy,” eight “Holds,” and one “Strong Sell.” This is slightly less optimistic than a couple of months ago when 14 analysts suggested a “Strong Buy.”
On April 25, Truist Financial Corporation (TFC) maintained a “Hold” rating on SYF and reduced the price target to $57, indicating a possible upside of 2.8% from current levels. The average price target of $62.23 represents a 12.2% premium over SYF’s current price, while the highest target of $88 suggests a significant upside potential of 58.7%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
