UBS Group Issues Pessimistic Forecast for Synchrony Financial (NYSE:SYF) Stock Price

Key Points

• UBS Group lowered Synchrony Financial’s price target from $81 to $80 while maintaining a “neutral” rating, implying roughly 4.2% upside from the stock’s reported $76.78 price.
• Analyst sentiment remains generally positive but mixed: Synchrony has a consensus “Moderate Buy” rating and an average price target of $87.78, with 10 Buy ratings and nine Holds.
• Synchrony exceeded quarterly earnings expectations, reporting $2.68 in EPS versus the $2.42 consensus and $3.82 billion in revenue; institutional investors own 96.48% of the company’s shares.

Synchrony Financial (NYSE:SYF - Get Free Report) had its price target dropped by stock analysts at UBS Group from $81.00 to $80.00 in a research report issued to clients and investors on Monday, Benzinga reports. The firm presently has a "neutral" rating on the financial services provider's stock. UBS Group's price objective points to a potential upside of 4.19% from the company's current price.

Several other analysts have also recently commented on SYF. Morgan Stanley lowered their price target on Synchrony Financial from $84.00 to $83.00 and set an "equal weight" rating for the company in a report on Monday, October 12th. Weiss Ratings upgraded shares of Synchrony Financial from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 8th. Jefferies Financial Group reissued a "buy" rating and set a $103.00 price objective on shares of Synchrony Financial in a report on Tuesday, October 20th. BMO Capital Markets initiated coverage on Synchrony Financial in a research note on Friday, October 9th. They set a "market perform" rating and a $81.00 price objective on the stock. Finally, Robert W. Baird raised their price target on Synchrony Financial from $86.00 to $90.00 and gave the stock an "outperform" rating in a report on Wednesday, July 22nd. Ten research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $87.78.

Synchrony Financial Trading Up 1.9%

SYF stock traded up $1.44 during midday trading on Monday, hitting $76.78. The stock had a trading volume of 5,659,309 shares, compared to its average volume of 3,896,219. The company's 50-day moving average price is $75.03 and its 200 day moving average price is $73.64. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.23 and a quick ratio of 1.23. The firm has a market cap of $23.91 billion, a PE ratio of 8.02, a price-to-earnings-growth ratio of 0.93 and a beta of 1.35. Synchrony Financial has a 12-month low of $63.08 and a 12-month high of $88.77.

Synchrony Financial (NYSE:SYF - Get Free Report) last issued its quarterly earnings results on Tuesday, October 20th. The financial services provider reported $2.68 earnings per share for the quarter, topping analysts' consensus estimates of $2.42 by $0.26. The company had revenue of $3.82 billion for the quarter, compared to analyst estimates of $3.81 billion. Synchrony Financial had a return on equity of 22.26% and a net margin of 14.59%. During the same quarter in the prior year, the company posted $2.86 EPS. On average, equities research analysts predict that Synchrony Financial will post 9.60 earnings per share for the current fiscal year.

Institutional Trading of Synchrony Financial

Several institutional investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in shares of Synchrony Financial during the 2nd quarter valued at $2,349,452,000. Bank of America Corp DE purchased a new position in Synchrony Financial in the second quarter valued at about $1,122,961,000. Dimensional Fund Advisors LP grew its stake in Synchrony Financial by 6.4% in the first quarter. Dimensional Fund Advisors LP now owns 6,039,753 shares of the financial services provider's stock valued at $410,760,000 after purchasing an additional 365,353 shares in the last quarter. First Trust Advisors LP increased its position in Synchrony Financial by 5.6% in the 1st quarter. First Trust Advisors LP now owns 5,338,110 shares of the financial services provider's stock worth $363,098,000 after purchasing an additional 281,451 shares during the last quarter. Finally, Assetmark Inc. raised its stake in shares of Synchrony Financial by 0.9% during the 1st quarter. Assetmark Inc. now owns 4,338,604 shares of the financial services provider's stock worth $295,112,000 after purchasing an additional 37,114 shares in the last quarter. 96.48% of the stock is currently owned by institutional investors and hedge funds.

About Synchrony Financial

Synchrony Financial NYSE: SYF is a consumer financial services company that provides private-label credit cards, co-branded credit cards and promotional financing programs. Its financing products are offered through retailers, manufacturers, healthcare providers and other businesses, helping consumers pay for purchases over time.

The company serves a range of industries, including digital commerce, home improvement, furniture, automotive, healthcare, jewelry, apparel, electronics and specialty retail.

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