Synchrony Financial now sees FY16 NCO at 4.5 percent to 4.8 percent over the next twelve months, up from prior outlook of 4.3 percent–4.5 percent. Additionally, the company "anticipates its ALLL will increase by a corresponding 20-30 bps versus the first quarter level of 5.50 percent."
Analyst John Hecht cut his 2016/17 EPS view to $2.53/$2.91 from $2.75/$3.05, respectively. The consensus estimate calls for EPS of $2.81 for 2016 and $3.09 for 2017.
"While the company increased its NCO guidance, we believe there are some potential offsets including better-than-forecast loan growth," Hecht wrote in a note.
The company grew its loan portfolio by 13 percent in the first quarter versus 2016 loan growth guidance of 7-9 percent.
The analyst attributed the company's NCO guidance change to recent disruption in the credit card consolidation arena and credit normalization.
Hecht also cut the price target to $35 from $42. Shares of Synchrony Financial were up 2.04 percent to $26.99 at time of writing.
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
