Synchrony Financial (NYSE:SYF) Receives a Lower Rating From Merrill Lynch. Will This be Detrimental to the Share Price?

December 7, 2017 - By Kurt Siggers

  Synchrony Financial (NYSE:SYF) Receives a Lower Rating From Merrill Lynch. Will This be Detrimental to the Share Price?

Synchrony Financial (NYSE:SYF) Receives a Downgrade

In a research report issued to investors and clients on 6 October, stock analysts at Merrill Lynch’s equity research division downgraded the rating for shares of Synchrony Financial (NYSE:SYF) to a Hold. They now have a key price target of $33.0 on SYF shares, equating to -11.62 % more downside.

Synchrony Financial (NYSE:SYF) Ratings Coverage

Among 27 analysts covering Synchrony Financial (NYSE:SYF), 19 have Buy rating, 0 Sell and 8 Hold. Therefore 70% are positive. Synchrony Financial has $44 highest and $31 lowest target. $37.41’s average target is 0.19% above currents $37.34 stock price. Synchrony Financial had 58 analyst reports since July 20, 2015 according to SRatingsIntel. BMO Capital Markets maintained the shares of SYF in report on Wednesday, May 31 with “Buy” rating. The company was upgraded on Thursday, December 15 by Bank of America. The stock has “Buy” rating by Sterne Agee CRT on Monday, November 23. The firm has “Buy” rating given on Friday, October 20 by BMO Capital Markets. Oppenheimer maintained Synchrony Financial (NYSE:SYF) on Friday, July 21 with “Hold” rating. The company was downgraded on Wednesday, December 7 by Wedbush. BMO Capital Markets maintained Synchrony Financial (NYSE:SYF) rating on Friday, October 6. BMO Capital Markets has “Buy” rating and $40.0 target. Barclays Capital maintained the shares of SYF in report on Monday, October 23 with “Overweight” rating. BTIG Research maintained Synchrony Financial (NYSE:SYF) on Thursday, May 25 with “Buy” rating. As per Friday, December 1, the company rating was maintained by Jefferies.

The stock decreased 0.13% or $0.05 during the last trading session, reaching $37.34. About 8.08 million shares traded or 25.14% up from the average. Synchrony Financial (NYSE:SYF) has declined 10.35% since December 7, 2016 and is downtrending. It has underperformed by 27.05% the S&P500.

Analysts await Synchrony Financial (NYSE:SYF) to report earnings on January, 19. They expect $0.68 earnings per share, down 2.86 % or $0.02 from last year’s $0.7 per share. SYF’s profit will be $532.16 million for 13.73 P/E if the $0.68 EPS becomes a reality. After $0.70 actual earnings per share reported by Synchrony Financial for the previous quarter, Wall Street now forecasts -2.86 % negative EPS growth.

Synchrony Financial operates as a consumer financial services firm in the United States. The company has market cap of $29.22 billion. The firm offers private label credit cards, dual cards, and small and medium-sized business credit products; and promotional financing for consumer purchases, such as private label credit cards and installment loans. It has a 14.19 P/E ratio. It also provides promotional financing to clients for health and personal care procedures, products, or services, such as dental, veterinary, cosmetic, vision and audiology; debt cancellation products; and deposit products, including certificates of deposit, individual retirement, money market, and savings accounts, as well as accepts deposits through third-party securities brokerage firms.

More notable recent Synchrony Financial (NYSE:SYF) news were published by: Fortune.com which released: “The Best Workplaces for Diversity” on December 05, 2017, also Seekingalpha.com with their article: “Synchrony Financial: Greater Risks/Rewards” published on November 20, 2017, Techcrunch.com published: “PayPal to sell $6 billion in consumer loans to Synchrony Financial” on November 16, 2017. More interesting news about Synchrony Financial (NYSE:SYF) were released by: Businesswire.com and their article: “Synchrony Financial Achieves Top Score for Corporate Equality Index Three …” published on November 09, 2017 as well as Fool.com‘s news article titled: “Why PayPal Holdings Wants Out of (and Synchrony Financial Wants In) the Credit …” with publication date: December 07, 2017.

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