Synchrony Financial (SYF) Stock Forecast & Price Target

Synchrony Financial has demonstrated a positive financial trajectory, evidenced by a net interest margin increase of 32 basis points year-over-year, reaching 14.78%. Furthermore, new account growth of 10% year-over-year in the third quarter and rising frequency and average ticket sizes indicate robust consumer engagement with its credit products. The company also reported a sequential and year-over-year growth in net interest income to $4.5 billion, alongside a notable improvement in loan receivables, which reflects a strengthened credit profile.

The outlook for Synchrony Financial's stock appears negative due to lowered net revenue guidance for 2025, which signals potential challenges in achieving expected growth rates in loans and spending, raising concerns for 2026 performance. Additionally, there are indications of a deteriorating economic environment and heightened competitive pressures that may lead to a slowdown in loan and revenue growth, alongside potential losses of retail partners. Finally, there are significant risks associated with asset quality deterioration, which could result in materially higher credit losses driven by increased delinquency rates among consumers.