The Goldman Sachs Group Forecasts Strong Price Appreciation for Bread Financial (NYSE:BFH) Stock

Key Points

• Goldman Sachs raised its price target on Bread Financial from $94 to $108 while keeping a neutral rating, implying about 4.14% upside from the current share price.
• Other analysts remain mostly constructive on BFH, with several firms issuing buy or positive ratings and the consensus price target standing at $104.92.
• Bread Financial has been performing well operationally, recently beating earnings and revenue estimates, with quarterly EPS of $4.18 versus $3.00 expected and revenue up 4.9% year over year.

Bread Financial (NYSE:BFH - Get Free Report) had its price objective raised by The Goldman Sachs Group from $94.00 to $108.00 in a research report issued on Tuesday,Benzinga reports. The firm presently has a "neutral" rating on the stock. The Goldman Sachs Group's price objective indicates a potential upside of 4.14% from the stock's current price.

Several other research firms also recently weighed in on BFH. Wolfe Research reaffirmed a "positive" rating on shares of Bread Financial in a research note on Wednesday, June 10th. Morgan Stanley set a $98.00 price objective on Bread Financial in a report on Friday, April 24th. Loop Capital started coverage on Bread Financial in a research note on Thursday, May 21st. They set a "buy" rating and a $104.00 price target on the stock. Wall Street Zen raised shares of Bread Financial from a "hold" rating to a "buy" rating in a research note on Saturday, June 13th. Finally, BTIG Research increased their target price on shares of Bread Financial from $105.00 to $132.00 and gave the stock a "buy" rating in a report on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $104.92.

Bread Financial Stock Up 1.5%

Shares of NYSE:BFH opened at $103.70 on Tuesday. The firm has a market capitalization of $4.19 billion, a PE ratio of 7.62, a price-to-earnings-growth ratio of 0.90 and a beta of 1.10. The business has a 50 day simple moving average of $93.60 and a two-hundred day simple moving average of $81.91. Bread Financial has a 1 year low of $53.83 and a 1 year high of $109.91. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.15 and a quick ratio of 1.15.

Bread Financial (NYSE:BFH - Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The company reported $4.18 EPS for the quarter, topping analysts' consensus estimates of $3.00 by $1.18. The firm had revenue of $1.02 billion for the quarter, compared to analysts' expectations of $992.05 million. Bread Financial had a net margin of 11.90% and a return on equity of 18.79%. The business's revenue for the quarter was up 4.9% on a year-over-year basis. During the same period in the prior year, the business posted $2.86 earnings per share. On average, equities analysts predict that Bread Financial will post 10.92 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Ralph J. Andretta sold 15,000 shares of the stock in a transaction on Friday, May 29th. The stock was sold at an average price of $89.10, for a total value of $1,336,500.00. Following the completion of the transaction, the chief executive officer directly owned 582,241 shares of the company's stock, valued at approximately $51,877,673.10. This represents a 2.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John J. Fawcett bought 698 shares of the firm's stock in a transaction on Thursday, May 21st. The stock was acquired at an average cost of $86.43 per share, for a total transaction of $60,328.14. Following the completion of the purchase, the director directly owned 11,000 shares in the company, valued at approximately $950,730. This represents a 6.78% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On Bread Financial

Hedge funds have recently modified their holdings of the business. Kemnay Advisory Services Inc. purchased a new stake in Bread Financial during the fourth quarter worth about $28,000. Cullen Frost Bankers Inc. acquired a new stake in Bread Financial in the fourth quarter valued at $29,000. Northwestern Mutual Wealth Management Co. lifted its stake in Bread Financial by 141.2% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company's stock worth $31,000 after purchasing an additional 329 shares during the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of Bread Financial by 127.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company's stock worth $41,000 after buying an additional 398 shares during the last quarter. Finally, Pacer Advisors Inc. lifted its position in Bread Financial by 58.7% in the first quarter. Pacer Advisors Inc. now owns 614 shares of the company's stock valued at $46,000 after acquiring an additional 227 shares during the last quarter. 99.52% of the stock is currently owned by hedge funds and other institutional investors.

Bread Financial Company Profile

Bread Financial, formerly known as Alliance Data Systems, is a Columbus, Ohio–based financial services company that specializes in providing private label credit programs, co-brand credit cards and digital payment solutions for retail partners. The company designs, issues and services proprietary credit products, enabling merchants to offer branded financing options that drive customer loyalty and increase basket sizes at the point of sale. Through its Bread technology platform, Bread Financial delivers installment-based payment options that integrate directly into e-commerce and in-store checkout experiences.

In addition to its core credit offerings, Bread Financial provides analytics, marketing and loyalty services to help merchants better understand consumer behavior and optimize promotional strategies.

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