Analysts Raise Forecasts After Strong Q3 Earning

Synchrony Financial SYF outperformed expectations in its third-quarter results and increased its FY24 EPS forecast on Wednesday.

The company posted a net interest income of $4.609 billion, exceeding the $4.491 billion consensus, reflecting a YoY growth of 5.7%. This was mainly due to increased loan interest and fees, even with higher interest expenses from rising rates.

Net revenue climbed 9.8% to $3.814 billion, though net interest margin fell by 32 basis points to 15.04%. Net earnings rose 29% YoY to $789 million, resulting in an EPS of $1.94, above the expected $1.81.

Brian Wenzel, CFO of Synchrony, highlighted the company’s strong position for sustainable growth driven by its unique data and digital capabilities.

For FY24, Synchrony forecasts EPS to be between $8.45 – $8.55, raised from a previous estimate of $7.60 – $7.80, surpassing the $7.79 consensus and ignoring any potential late fee regulations in 2024.

Following the earnings announcement, Synchrony’s shares dipped 0.4% to $56.30.

Here are the recent price target updates from analysts:

• Mark Devries from Deutsche Bank maintained a Buy rating and raised the target from $58 to $68.
• David Scharf at JMP Securities kept a Market Outperform rating and increased the target from $60 to $68.
• Betsy Graseck from Morgan Stanley maintained an Underweight rating, lifting the target from $37 to $40.
• Jon Arfstrom at RBC Capital maintained a Sector Perform rating and raised the target from $55 to $62.

Thinking of buying SYF stock? Check out what analysts are saying:

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