Bread Financial (NYSE:BFH) Raised to “Strong-Buy” at Wall Street Zen

Bread Financial (NYSE:BFH) was upgraded by analysts at Wall Street Zen from a “buy” rating to a “strong-buy” rating in a research note issued on Friday.

Several other research analysts have also weighed in on BFH. Barclays lifted their price objective on shares of Bread Financial from $52.00 to $61.00 and gave the stock an “underweight” rating in a research note on Tuesday, January 6th. TD Cowen reiterated a “hold” rating on shares of Bread Financial in a report on Thursday, January 8th. Weiss Ratings reissued a “buy (b-)” rating on shares of Bread Financial in a research report on Monday, December 29th. The Goldman Sachs Group raised shares of Bread Financial from a “sell” rating to a “hold” rating and set a $84.00 price target for the company in a report on Tuesday, January 6th. Finally, Evercore ISI set a $81.00 price objective on Bread Financial in a research note on Tuesday, January 6th. Four research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $78.82.

Bread Financial Stock Down 3.1%

Shares of Bread Financial stock opened at $68.78 on Friday. The business has a fifty day simple moving average of $72.23 and a 200 day simple moving average of $65.22. The stock has a market cap of $3.14 billion, a PE ratio of 7.00, a price-to-earnings-growth ratio of 0.45 and a beta of 1.27. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.33. Bread Financial has a 12 month low of $38.21 and a 12 month high of $82.03.

Bread Financial (NYSE:BFH) last released its earnings results on Thursday, October 23rd. The company reported $4.02 earnings per share for the quarter, beating the consensus estimate of $2.11 by $1.91. The firm had revenue of $1.24 billion for the quarter, compared to analyst estimates of $974.30 million. Bread Financial had a return on equity of 15.97% and a net margin of 10.08%.The company’s quarterly revenue was down 1.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.83 earnings per share. Research analysts predict that Bread Financial will post 6.45 EPS for the current year.

Bread Financial declared that its board has initiated a share buyback program on Thursday, October 23rd that permits the company to buyback $200.00 million in shares. This buyback authorization permits the company to reacquire up to 7.1% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s management believes its shares are undervalued.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. lifted its stake in Bread Financial by 141.2% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company’s stock valued at $31,000 after acquiring an additional 329 shares in the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of Bread Financial by 127.2% in the second quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company’s stock valued at $41,000 after purchasing an additional 398 shares during the last quarter. BOK Financial Private Wealth Inc. acquired a new stake in shares of Bread Financial in the second quarter valued at approximately $42,000. Caitong International Asset Management Co. Ltd lifted its position in shares of Bread Financial by 8,300.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 840 shares of the company’s stock worth $47,000 after purchasing an additional 830 shares in the last quarter. Finally, Salomon & Ludwin LLC boosted its holdings in Bread Financial by 136.2% during the third quarter. Salomon & Ludwin LLC now owns 888 shares of the company’s stock worth $49,000 after purchasing an additional 512 shares during the last quarter. 99.52% of the stock is owned by institutional investors and hedge funds.

Bread Financial News Roundup

Here are the key news stories impacting Bread Financial this week:

• Positive Sentiment: Zacks published a preview arguing Bread Financial may beat upcoming earnings, highlighting factors that could drive an upside surprise. Bread Financial Holdings (BFH) Expected to Beat Earnings Estimates: Can the Stock Move Higher?
• Positive Sentiment: Zacks raised Q3 2026 and Q3 2027 EPS estimates (Q3 2026 to $3.10 from $2.77; Q3 2027 to $3.91 from $3.71), indicating some expectations for stronger performance later in the fiscal year.
• Neutral Sentiment: Zacks maintained a “Hold” rating on BFH and left the consensus full‑year view in its note context (market consensus referenced at $6.45 current-year EPS), signaling analysts are not yet shifting to a buy/sell stance.
• Negative Sentiment: Zacks cut several near‑term and annual EPS forecasts: Q4 2026 was reduced sharply (to $1.18 from $1.72), FY2026 to $9.12 from $9.36, FY2027 to $10.56 from $10.69, and Q1 2027 slightly to $1.99 from $2.00. These downgrades increase short‑term earnings uncertainty and are a likely driver of downward pressure on the stock.
• Negative Sentiment: Additional reductions include Q4 2027 (to $2.29 from $2.61) and modest cuts to early‑quarter forecasts (e.g., Q1 2026 and Q1 2027 adjustments), reinforcing the near‑term weakening theme in Zacks’ model assumptions.

About Bread Financial

Bread Financial, formerly known as Alliance Data Systems, is a Columbus, Ohio–based financial services company that specializes in providing private label credit programs, co-brand credit cards and digital payment solutions for retail partners. The company designs, issues and services proprietary credit products, enabling merchants to offer branded financing options that drive customer loyalty and increase basket sizes at the point of sale. Through its Bread technology platform, Bread Financial delivers installment-based payment options that integrate directly into e-commerce and in-store checkout experiences.

In addition to its core credit offerings, Bread Financial provides analytics, marketing and loyalty services to help merchants better understand consumer behavior and optimize promotional strategies.