Synchrony Financial (NYSE:SYF) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a note issued to investors on Monday.

According to Zacks, “Synchrony Financial’s third quarter earnings surpassed the Zacks Consensus Estimate by 9.4% but declined year over year due to higher expenses. In the last three months, shares of the company have outperformed the industry. The company is well positioned for long-term growth on the back of consistent increase in revenues driven by its rapidly growing interest income and inorganic growth strategies. Moreover, its CareCredit platform continued to perform well over past many quarters. Synchrony Financial’s healthy balance sheet remains a major positive. However, the company has been witnessing a steep rise in its expenses since 2013 that has weighed on its bottom line. It also suffers from increasing allowance for loan losses that has been increasing due to the rapid growth in its loan portfolio. The company also suffers from rising fraud-related losses.”

A number of other research analysts have also recently commented on SYF. Instinet restated a “buy” rating and issued a $35.00 price target (down previously from $38.00) on shares of Synchrony Financial in a research report on Wednesday, July 12th. Jefferies Group LLC reiterated a “buy” rating and issued a $40.00 target price on shares of Synchrony Financial in a research report on Friday, July 14th. BMO Capital Markets reiterated a “buy” rating on shares of Synchrony Financial in a research report on Friday, July 21st. Oppenheimer Holdings, Inc. reiterated a “hold” rating on shares of Synchrony Financial in a research report on Saturday, July 22nd. Finally, Morgan Stanley reiterated an “overweight” rating and issued a $35.00 target price (up previously from $33.00) on shares of Synchrony Financial in a research report on Tuesday, July 25th. Twelve equities research analysts have rated the stock with a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the company. The company presently has an average rating of “Buy” and an average price target of $36.88.

Synchrony Financial (NYSE:SYF) traded up 0.33% during midday trading on Monday, hitting $33.15. 1,831,880 shares of the stock traded hands. The stock has a market capitalization of $26.37 billion, a PE ratio of 12.45 and a beta of 1.01. Synchrony Financial has a 12-month low of $26.01 and a 12-month high of $38.06. The firm’s 50 day moving average is $30.41 and its 200-day moving average is $29.93.

Synchrony Financial (NYSE:SYF) last issued its quarterly earnings results on Friday, October 20th. The financial services provider reported $0.70 EPS for the quarter, topping the Zacks’ consensus estimate of $0.64 by $0.06. Synchrony Financial had a return on equity of 15.30% and a net margin of 13.84%. The company had revenue of $3.88 billion for the quarter, compared to analysts’ expectations of $3.78 billion. During the same quarter last year, the business earned $0.73 earnings per share. On average, analysts anticipate that Synchrony Financial will post $2.59 EPS for the current fiscal year.

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A number of large investors have recently made changes to their positions in the business. Bbva Compass Bancshares Inc. grew its stake in Synchrony Financial by 0.3% in the 2nd quarter. Bbva Compass Bancshares Inc. now owns 32,000 shares of the financial services provider’s stock valued at $954,000 after purchasing an additional 94 shares during the period. ING Groep NV grew its stake in Synchrony Financial by 0.4% in the 2nd quarter. ING Groep NV now owns 39,434 shares of the financial services provider’s stock valued at $1,176,000 after purchasing an additional 140 shares during the period. Patten Group Inc. grew its stake in Synchrony Financial by 2.0% in the 1st quarter. Patten Group Inc. now owns 8,435 shares of the financial services provider’s stock valued at $280,000 after purchasing an additional 165 shares during the period. Federated Investors Inc. PA grew its stake in Synchrony Financial by 0.6% in the 2nd quarter. Federated Investors Inc. PA now owns 26,333 shares of the financial services provider’s stock valued at $786,000 after purchasing an additional 166 shares during the period. Finally, Parsons Capital Management Inc. RI grew its stake in Synchrony Financial by 1.2% in the 1st quarter. Parsons Capital Management Inc. RI now owns 25,860 shares of the financial services provider’s stock valued at $887,000 after purchasing an additional 300 shares during the period. Hedge funds and other institutional investors own 87.06% of the company’s stock.

Synchrony Financial Company Profile

Synchrony Financial is a consumer financial services company. The Company provides a range of credit products through programs it has established with a group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers. The Company’s revenue activities are managed through three sales platforms: Retail Card, Payment Solutions and CareCredit.

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