Bread Financial (NYSE:BFH) Price Target Raised to $68.00

Bread Financial (NYSE:BFH) had its target price lifted by Morgan Stanley from $62.00 to $68.00 in a research report sent to investors on Friday morning,Benzinga reports. Morgan Stanley currently has an underweight rating on the stock.

Several other research analysts also recently issued reports on the company. Wall Street Zen raised Bread Financial from a “buy” rating to a “strong-buy” rating in a research note on Friday, January 23rd. Keefe, Bruyette & Woods raised their price target on shares of Bread Financial from $82.00 to $92.00 and gave the company an “outperform” rating in a research note on Friday, January 2nd. Weiss Ratings reiterated a “buy (b-)” rating on shares of Bread Financial in a report on Monday, December 29th. Royal Bank Of Canada restated a “sector perform” rating and issued a $83.00 price objective on shares of Bread Financial in a report on Monday, January 12th. Finally, JPMorgan Chase & Co. reaffirmed an “underweight” rating and set a $72.00 target price on shares of Bread Financial in a report on Thursday, December 4th. Four investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $79.27.

Bread Financial Stock Down 0.6%

Shares of NYSE:BFH opened at $72.60 on Friday. Bread Financial has a 52-week low of $38.21 and a 52-week high of $82.03. The company has a market capitalization of $3.31 billion, a PE ratio of 6.70, a price-to-earnings-growth ratio of 0.48 and a beta of 1.26. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.19 and a current ratio of 1.17. The company has a fifty day moving average of $73.11 and a 200-day moving average of $65.57.

Bread Financial (NYSE:BFH) last issued its quarterly earnings data on Thursday, January 29th. The company reported $2.07 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $1.67. The business had revenue of $975.00 million for the quarter, compared to analyst estimates of $954.74 million. Bread Financial had a return on equity of 17.92% and a net margin of 11.02%.During the same quarter in the previous year, the company posted $0.41 EPS. On average, equities analysts predict that Bread Financial will post 6.45 EPS for the current fiscal year.

Bread Financial Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Friday, February 27th will be given a dividend of $0.23 per share. The ex-dividend date is Friday, February 27th. This represents a $0.92 annualized dividend and a dividend yield of 1.3%. Bread Financial’s dividend payout ratio is presently 8.49%.

Bread Financial announced that its board has approved a stock repurchase program on Thursday, October 23rd that allows the company to buyback $200.00 million in shares. This buyback authorization allows the company to reacquire up to 7.1% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Bread Financial

A number of institutional investors and hedge funds have recently modified their holdings of BFH. Teacher Retirement System of Texas raised its stake in shares of Bread Financial by 2.6% in the second quarter. Teacher Retirement System of Texas now owns 7,460 shares of the company’s stock worth $426,000 after purchasing an additional 192 shares during the last quarter. Arizona State Retirement System grew its holdings in Bread Financial by 1.4% during the third quarter. Arizona State Retirement System now owns 14,527 shares of the company’s stock worth $810,000 after buying an additional 200 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its position in Bread Financial by 1.7% in the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 11,951 shares of the company’s stock valued at $683,000 after buying an additional 203 shares during the last quarter. Illinois Municipal Retirement Fund lifted its stake in Bread Financial by 0.9% during the 3rd quarter. Illinois Municipal Retirement Fund now owns 25,186 shares of the company’s stock valued at $1,405,000 after acquiring an additional 213 shares in the last quarter. Finally, Envestnet Asset Management Inc. boosted its holdings in Bread Financial by 2.5% during the 2nd quarter. Envestnet Asset Management Inc. now owns 11,085 shares of the company’s stock worth $633,000 after acquiring an additional 269 shares during the last quarter. 99.52% of the stock is currently owned by institutional investors.

Bread Financial News Summary

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

• Positive Sentiment: Q4 results materially beat expectations — strong EPS and revenue, with management highlighting improved credit metrics and solid margins, which supports near-term profitability. MarketBeat Earnings Summary
• Positive Sentiment: BTIG reaffirmed a “buy” rating and maintained a $98 price target (significant upside vs. the current share level), offering a bullish analyst counterpoint that may support the stock. TickerReport: BTIG Coverage
• Positive Sentiment: Company commentary and investor materials indicate low single-digit loan growth guidance for 2026 and improving credit metrics (delinquencies down year-over-year), which reduces downside risk from credit cycles. Seeking Alpha: Credit Metrics Update
• Neutral Sentiment: Bread declared a quarterly common dividend of $0.23 per share (payable March 16, ex-dividend Feb 27), providing modest income but not a large yield. GlobeNewswire: Dividend Notice
• Neutral Sentiment: Company performance update published December metrics (net loss rate 7.4%, delinquency ~5.8%) — shows improvement vs. prior year but still-elevated loss levels that investors will monitor. GlobeNewswire: Performance Update
• Neutral Sentiment: Earnings call materials and transcript are available for deeper read — useful for investors assessing forward commentary on losses, loan growth and buyback/dividend plans. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Morgan Stanley raised its price target to $68 but kept an “underweight” stance — the PT implies downside from current levels and signals caution from a major institutional shop, which can weigh on sentiment. Benzinga: Analyst Note

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.