Synchrony Financial (SYF) Stock Forecast & Price Target

Synchrony Financial demonstrated strong financial performance with a 32 basis points year-over-year increase in margin, reaching 14.78%, alongside a sequential margin increase of 4 basis points. The company's net interest income also showed a positive trend, growing 2.6% from the previous year to $4.5 billion. Notably, new account growth of 10% year-over-year in the third quarter, along with improvements in frequency and average ticket sizes, underscores the firm's expanding market presence and customer engagement.

The negative outlook on Synchrony Financial's stock is primarily driven by lower net revenue guidance for 2025, raising concerns about potential missed expectations for loan and spending growth in 2026. Additionally, the anticipated deteriorating economic environment and increased competitive pressures could result in a slowdown of loan and revenue growth, as well as a loss of retail partners, which are critical for its private-label credit card business. Lastly, a decline in asset quality is expected to lead to materially higher credit losses, thereby compounding the risks associated with delinquencies in a challenging macroeconomic landscape.