A Glimpse Into The Expert Outlook On Bread Finl Hldgs Through 7 Analysts

Bread Finl Hldgs BFH has been analyzed by 7 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $38.29, a high estimate of $52.00, and a low estimate of $27.00. This upward trend is evident, with the current average reflecting a 18.43% increase from the previous average price target of $32.33.

Understanding Analyst Ratings: A Comprehensive Breakdown

A clear picture of Bread Finl Hldgs's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Bread Finl Hldgs. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Bread Finl Hldgs compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Bread Finl Hldgs's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Bread Finl Hldgs's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Bread Finl Hldgs analyst ratings.

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Discovering Bread Finl Hldgs: A Closer Look

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.

Unraveling the Financial Story of Bread Finl Hldgs

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Bread Finl Hldgs's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -1.55%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 4.23%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Bread Finl Hldgs's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.49%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Bread Finl Hldgs's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.19%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.86.

Analyst Ratings: What Are They?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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