Synchrony Financial (SYF) Stock Forecast & Price Target

Synchrony Financial's positive outlook is supported by several key financial metrics, indicating robust operational performance. Notably, the company's net interest income grew by 1.3% sequentially and 2.6% year-over-year, reaching $4.5 billion, while the margin improved both sequentially and annually, rising by 4 bps and 32 bps to 14.78%. Additionally, the growth in new accounts by 10% year-over-year in the third quarter and the significant increase in the risk-adjusted spread to approximately 4.0% of loan receivables further underscore the company's favorable trajectory in terms of credit improvement and customer engagement.

Synchrony Financial has faced a negative outlook primarily due to lowered net revenue guidance for 2025, raising concerns about the company's ability to achieve expected loan and spending growth in 2026. The financial analyst notes that a deteriorating economic environment and increasing competitive pressures could lead to a deceleration in loan and revenue growth, alongside potential losses of retail partners. Additionally, there are significant risks associated with credit quality deterioration, which could result in higher credit losses amid weakening consumer health and increased delinquency rates.