2024-01-24 18:32:15 ET
Summary
- Synchrony Financial's share price has rebounded, catching up to the strong company performance I noted last quarter.
- Charge-offs and delinquency rates are increasing, but the company expects them to peak in the first half of 2024.
- Synchrony expects to grow loan balances by 6%-8% in 2024 through acquisitions and growth of existing business.
- The loan growth, along with cost savings, more than offsets the credit quality and net interest margin headwinds, making the stock a Buy.
The Share Price Catches Up To Company Performance
Last time I wrote about Synchrony Financial ( SYF ) in October 2023 , I rated it a rare Strong Buy as the market was going through one of its regular bearish sentiment periods toward the stock. The timing of that article was fortunate, as it coincided with a 5-month low, and the stock has since returned over 36%....
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Synchrony Financial: Slowing A Little But Still A Good Deal