BFH Stock Forecast & Price Target

Bread Financial Holdings demonstrates a positive outlook driven by several key financial metrics, including a sequential deposit balance increase of 1.8% to $13.1 billion, suggesting strong momentum in its consumer direct business. The anticipated low single-digit revenue growth, coupled with expectations for a modest increase in the net interest margin due to loan balance growth, supports the company's financial stability. Additionally, a significant 22.2% increase in credit sales to $7.9 billion underscores healthy demand and effective partnerships within its credit card business, further enhancing its growth prospects.

Bread Financial Holdings is facing a negative financial outlook due to a 5.8% sequential decline and an 8.9% year-over-year drop in total revenues, which amounted to $926 million. The company's net interest income also decreased by 4.7% sequentially and 8.1% compared to the previous year, indicating a challenging financial environment. Additionally, the credit reserve as a percentage of loans stands at 11.9%, down from the prior year's 12.0%, while management anticipates net charge-offs of 8.0% to 8.2%, reflecting ongoing pressures from inflation and competition in the market.