This report offers a detailed examination of Synchrony Financial's (SYF) market standing, drawing insights from recent evaluations by 10 financial analysts. It covers a spectrum of opinions from bullish to bearish and presents an updated 12-month average price target. Furthermore, the analysis delves into key financial metrics, such as market capitalization, revenue growth, profitability ratios, and debt management, providing a holistic view of the company's performance and position within the financial sector.
Over the last three months, financial experts have provided diverse perspectives on Synchrony Financial. The latest data indicates a significant shift in sentiment, with one analyst issuing a bullish rating within the past 30 days, while no neutral or bearish ratings were recorded during this period. Comparatively, one month prior, there was one bullish and three somewhat bullish ratings, alongside one indifferent assessment. Two months ago, the company received two somewhat bullish and two indifferent ratings, with no ratings issued three months earlier, highlighting a recent increase in analyst attention.
Analysts have established a 12-month average price target of $94.2 for Synchrony Financial, reflecting a 7.73% increase from the previous average of $87.44. The highest projected price stands at $101.00, while the lowest is $82.00, indicating a range of expectations among experts. This upward revision of the average price target suggests growing confidence in the company's future performance.
Key analyst actions include BTIG lowering its rating from 'Buy' to $96.00, JP Morgan raising its rating to 'Neutral' with a target of $86.00, and TD Cowen increasing its 'Buy' rating to $100.00. Barclays and Wells Fargo also raised their ratings to 'Overweight' with targets of $101.00 and $100.00 respectively. Keefe, Bruyette & Woods upgraded to 'Outperform' with a target of $98.00, while Truist Securities raised its 'Hold' rating to $92.00. Wolfe Research initiated coverage with an 'Outperform' rating at $92.00, and Baird maintained its 'Neutral' stance at $82.00. These varied adjustments underscore the dynamic nature of market conditions and individual firm assessments.
Synchrony Financial, an offshoot of GE Capital's retail financing arm, holds the distinction of being the United States' foremost issuer of private-label credit cards. The company collaborates with various businesses to extend its credit offerings through physical stores, online platforms, and mobile applications. Its operations are segmented into three primary areas: retail card services, which include private-label and co-branded general-purpose credit cards; payment solutions, focusing on promotional financing for significant purchases; and CareCredit, which provides financing for elective healthcare procedures.
A thorough analysis of Synchrony Financial's financials reveals robust performance indicators. The company boasts an elevated market capitalization, positioning it significantly above industry averages and underscoring its substantial market presence. Over the last quarter, Synchrony Financial demonstrated positive revenue growth of 0.24% as of September 30, 2025, indicating a solid increase in its top-line earnings. Despite this growth, the company faces competitive challenges within the Financials sector, as its growth rate remains below the average of its peers. Nonetheless, Synchrony Financial exhibits an impressive net margin of 27.65%, surpassing industry standards and reflecting efficient cost management and strong profitability. Its Return on Equity (ROE) is equally exceptional at 6.7%, highlighting the effective utilization of equity capital and overall financial health. However, the Return on Assets (ROA) stands at 0.89%, which is below industry benchmarks, suggesting potential areas for improving asset efficiency. In terms of debt management, the company maintains a balanced approach with a debt-to-equity ratio of 0.91, indicating a healthy financial structure below industry norms.
Analyst ratings are crucial for understanding market sentiment towards a company. These ratings are developed by financial experts from approximately 150 firms, who forecast a company's financial performance over the next five years, considering factors like revenue predictability and risk. Analysts gather information from company conference calls, financial statements, and direct communication with insiders. Typically, ratings are updated quarterly or following major company announcements, providing investors with guidance on growth estimates, earnings, and revenue. While valuable, it's important to remember that these are expert opinions, offering a perspective on a stock's potential rather than guaranteed outcomes.