Breaking Down Synchrony Finl: 9 Analysts Share Their Views

Throughout the last three months, 9 analysts have evaluated Synchrony Finl SYF, offering a diverse set of opinions 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.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $40.89, with a high estimate of $56.00 and a low estimate of $29.00. This upward trend is apparent, with the current average reflecting a 13.58% increase from the previous average price target of $36.00.

Decoding Analyst Ratings: A Detailed Look

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

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Synchrony Finl. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Synchrony Finl compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Synchrony Finl's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Synchrony Finl's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Synchrony Finl analyst ratings.

All You Need to Know About Synchrony Finl

Synchrony Financial, originally a spinoff of GE Capital's retail financing business, is the largest provider of private-label credit cards in the United States by both outstanding receivables and purchasing volume. Synchrony partners with other firms to market its credit products in their physical stores as well as on their websites and mobile applications. Synchrony operates through three segments: retail card (private-label and co-branded general-purpose credit cards), payment solutions (promotional financing for large ticket purchases), and CareCredit (financing for elective healthcare procedures).

Understanding the Numbers: Synchrony Finl's Finances

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Over the 3 months period, Synchrony Finl showcased positive performance, achieving a revenue growth rate of 18.3% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.

Net Margin: Synchrony Finl's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 11.72% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Synchrony Finl's ROE excels beyond industry benchmarks, reaching 3.27%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Synchrony Finl's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.37%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 1.21, Synchrony Finl adopts a prudent financial strategy, indicating a balanced approach to debt management.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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