SYF - Bulls sees credit metrics bolstering card companies even as loans drift down

With January credit card metrics continuing to exhibit strength and getting a boost from fiscal stimulus, Morgan Stanley and Wolfe Research analysts stay bullish on credit card companies overall.Average charge-off rates and and total delinquency rates are improving at the strongest Y/Y pace in over eight years, write Morgan Stanley analysts Betsy L. Graseck and Jeffrey Adelson."We've sounded like a broken record for nearly a year now, but incoming credit data continues to surprise us," they said in a Feb. 17 note. Furthermore, they don't expect any credit deterioration coming through until Q1 2022 at the earliest."Each month that goes by gives increasing weight to our bull case of no meaningful credit deterioration coming through at all," they said.Wolfe Research analyst Bill Carcache, who discussed Capital One (COF), Discover Financial (DFS), and Synchrony Financial (SYF) in a Feb. 16 note, is also bullish: "This month’s results continue to support the

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Bulls sees credit metrics bolstering card companies even as loans drift down