Unveiling 4 Analyst Insights On Bread Finl Hldgs

During the last three months, 4 analysts shared their evaluations of Bread Finl Hldgs BFH, revealing diverse outlooks from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Bread Finl Hldgs, presenting an average target of $34.75, a high estimate of $48.00, and a low estimate of $26.00. Surpassing the previous average price target of $30.33, the current average has increased by 14.57%.

Investigating Analyst Ratings: An Elaborate Study

An in-depth analysis of recent analyst actions unveils how financial experts perceive Bread Finl Hldgs. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Bread Finl Hldgs. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Bread Finl Hldgs compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Bread Finl Hldgs's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Bread Finl Hldgs's market position. Stay informed and make well-informed decisions with our Ratings Table.

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All You Need to Know About Bread Finl Hldgs

Formed by a combination of JCPenney's credit card processing unit and The Limited's credit card bank business, Bread Financial is a provider of private label and co-branded credit cards, loyalty programs, and marketing services. The company's most financially significant unit is its credit card business that partners with retailers to jointly market Bread's credit cards to their customers. The company also retains minority interest in its recently spun-off LoyaltyOne division, which operates the largest airline miles loyalty program in Canada and offers marketing services to grocery chains in Europe and Asia.

Financial Milestones: Bread Finl Hldgs's Journey

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Bread Finl Hldgs's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -1.55% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: Bread Finl Hldgs's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 4.23%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Bread Finl Hldgs's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.49%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.19%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Bread Finl Hldgs's debt-to-equity ratio is below the industry average at 1.86, reflecting a lower dependency on debt financing and a more conservative financial approach.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.