Wall Street Experts Predict Optimism Towards Synchrony Financial Shares?
In the second quarter of this year, Synchrony Financial (SYF) outperformed expectations, with an EPS of $2.50 compared to Wall Street's forecast of $1.72. This strong performance is also reflected in the company's net interest income, which reached $4.52 billion, surpassing analysts' predictions of $4.50 billion.
SYF's strategic partnership with Dental Intelligence has integrated CareCredit into the platform, aiming to streamline patient financing and enhance administrative efficiency for dental practices.
The current consensus for SYF among analysts is generally positive, with a rating around "Moderate Buy" to "Buy." The average price target is approximately $72 to $74, indicating a moderate upside potential from the current price levels near $72-$73.
Analysts expect SYF's EPS to grow 24.3% to $8.19 on a diluted basis for the current fiscal year. For 2025, SYF's earnings per share (EPS) estimates show healthy growth, with consensus EPS expected at $7.76 and a full-year revenue forecast of about $18.47 billion, a 2.5% increase year over year.
Despite some mixed technical indicators and cautionary notes from market analysis, fundamentals such as revenue growth and earnings surprises have been strong, with recent beats on earnings estimates.
The Street-high price target of $100 suggests an ambitious upside potential of 46.1%. The mean price target of $78.62 represents a 14.9% premium to SYF's current price levels. Among the 24 analysts covering SYF stock, the consensus is a "Moderate Buy."
SYF provides credit products such as credit cards, commercial credit products, and consumer installment loans. The company, valued at $25.8 billion by market cap, has gained 54.5% over the past year, while the S&P 500 Index has rallied nearly 21.9%.
It's important to note that all information and data in this article is solely for informational purposes. Neha Panjwani did not have positions in any of the securities mentioned in this article.
Investors considering a long-term investment in SYF are advised to monitor upcoming earnings reports and broader economic factors impacting consumer credit markets. For more information, please view our website Disclosure Policy here.
Personal-finance enthusiasts may find potential for investing in Synchrony Financial (SYF) due to its strong business performance and anticipated growth. By strategically partnering with Dental Intelligence, SYF aims to improve patient financing and administrative efficiency in the dental industry, potentially increasing its market share in the personal-finance sector.
