JPMorgan Chase & Co. Cuts Synchrony Financial (NYSE:SYF) Price Target to $78.00

Key Points

• JPMorgan Chase & Co. cut its price target on Synchrony Financial to $78 from $81 while keeping a neutral rating, implying about 7.6% upside from the prior close.
• Other analysts remain generally positive to neutral on SYF, with the broader consensus at Moderate Buy and an average target price of $86.47.
• Synchrony reported $2.27 EPS for the quarter, topping estimates, though revenue missed expectations and declined 7.4% year over year; the company also authorized a stock buyback program.

Synchrony Financial (NYSE:SYF - Get Free Report) had its target price reduced by equities researchers at JPMorgan Chase & Co. from $81.00 to $78.00 in a research report issued on Monday,Benzinga reports. The brokerage currently has a "neutral" rating on the financial services provider's stock. JPMorgan Chase & Co.'s target price suggests a potential upside of 7.61% from the stock's previous close.

Several other brokerages have also issued reports on SYF. UBS Group boosted their target price on Synchrony Financial from $77.00 to $84.00 and gave the company a "neutral" rating in a research note on Tuesday, July 7th. Loop Capital began coverage on Synchrony Financial in a report on Friday, May 22nd. They issued a "hold" rating and a $81.00 price objective for the company. Truist Financial boosted their price objective on Synchrony Financial from $71.00 to $82.00 and gave the company a "hold" rating in a research note on Thursday, April 23rd. Robert W. Baird increased their target price on shares of Synchrony Financial from $83.00 to $86.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 22nd. Finally, Barclays lifted their target price on shares of Synchrony Financial from $82.00 to $93.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $86.47.

Synchrony Financial Stock Performance

Shares of SYF opened at $72.49 on Monday. The stock has a 50 day moving average of $73.17 and a 200 day moving average of $73.78. The company has a market capitalization of $24.38 billion, a price-to-earnings ratio of 7.50, a PEG ratio of 0.68 and a beta of 1.32. Synchrony Financial has a 12 month low of $63.08 and a 12 month high of $88.77. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 1.08.

Synchrony Financial (NYSE:SYF - Get Free Report) last announced its earnings results on Tuesday, April 21st. The financial services provider reported $2.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.14 by $0.13. The firm had revenue of $3.70 billion during the quarter, compared to analyst estimates of $3.81 billion. Synchrony Financial had a return on equity of 23.41% and a net margin of 15.80%.The business's revenue was down 7.4% compared to the same quarter last year. During the same period last year, the firm posted $1.89 EPS. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. As a group, sell-side analysts forecast that Synchrony Financial will post 9.33 earnings per share for the current year.

Synchrony Financial declared that its board has authorized a stock buyback program on Tuesday, April 21st that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the financial services provider to repurchase shares of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

Insider Activity

In other Synchrony Financial news, insider Jonathan S. Mothner sold 51,258 shares of the firm's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $71.23, for a total transaction of $3,651,107.34. Following the sale, the insider owned 132,664 shares in the company, valued at $9,449,656.72. This trade represents a 27.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.36% of the company's stock.

Institutional Investors Weigh In On Synchrony Financial

Hedge funds and other institutional investors have recently modified their holdings of the stock. FWL Investment Management LLC bought a new position in Synchrony Financial during the 3rd quarter worth approximately $26,000. Fideuram Asset Management Ireland dac bought a new position in shares of Synchrony Financial in the fourth quarter worth approximately $29,000. Advisors Asset Management Inc. bought a new position in shares of Synchrony Financial in the fourth quarter worth approximately $29,000. Palisade Asset Management LLC purchased a new position in shares of Synchrony Financial in the third quarter worth $29,000. Finally, Reflection Asset Management purchased a new position in shares of Synchrony Financial in the fourth quarter worth $31,000. Institutional investors own 96.48% of the company's stock.

Synchrony Financial Company Profile

Synchrony Financial NYSE: SYF is a consumer financial services company that specializes in providing point-of-sale financing and private-label, co-branded and branded credit card programs. The company serves as a payments and lending partner to retailers, digital merchants and service providers, offering consumer financing solutions designed to drive customer engagement and sales. Synchrony also operates a direct bank that offers deposit products, including savings accounts and certificates of deposit, which support its funding and customer-facing product suite.

Its core product set includes private-label and co-branded credit cards, general-purpose credit cards, installment loan programs and promotional financing options that are integrated into merchants' checkout experiences.

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