Price Target Increase#
Evercore ISI has raised its price target for Synchrony Financial (NYSE:SYF) from $80 to $90, while keeping an Outperform rating. This adjustment follows the company's strong first-quarter earnings for fiscal 2026.
Earnings Estimates Revised#
The firm has also increased its earnings per share (EPS) estimates for Synchrony Financial. For 2026, Evercore ISI now projects an EPS of $9.27, up from $9.08, and for 2027, the estimate is $10.66, an increase from $10.29. The revised estimates reflect lower loan loss provisions, which are funds set aside to cover potential loan defaults, but are partially offset by higher assumptions for reserve builds due to lower expected charge-offs, which are loans that are unlikely to be collected.
Strong Asset Quality and Buybacks#
Analyst John Pancari noted that Synchrony Financial's asset quality trends have surpassed expectations, even amidst macroeconomic and geopolitical uncertainties. The firm highlighted that share buybacks, where a company repurchases its own shares, remain a key strategy for returning capital to shareholders. This strategy has contributed to a significant 69% return on the stock over the past year.
Recent Financial Performance#
Synchrony Financial recently reported impressive first-quarter earnings for 2026, achieving an EPS of $2.27, which exceeded the forecast of $2.20. The company also reported revenues of $4.77 billion, significantly higher than the expected $3.78 billion. Additionally, BofA Securities has raised its price target for Synchrony Financial to $91 from $90, maintaining a Buy rating, citing strong purchase volume trends and an improved credit outlook as reasons for their positive outlook. These developments indicate ongoing confidence in Synchrony Financial's market position and financial stability.