Bread Financial hits over 1-year high after Evercore upgrades to 'in line'

Bread Financial Holdings

20/06/2024 19:22

** Shares of credit card issuer Bread Financial  BFH.N  jump
as much as 9.1%, hitting their highest in more than a year; last
up 7.5% at $43.92
    ** Evercore ISI upgrades BFH shares to "in line" rating from
"underperform"; raises PT to $45 from $42, a 10.2% upside to
stock's last close
    ** Brokerage says BFH's medium term return on average
tangible common equity (ROTCE) target of low-to-mid 20% range
introduced by the management on Tuesday was well received by
investors
    ** ROTCE is a key metric to assess a company's performance 
    ** Brokerage says strengthening ROTCE trajectory and peaking
losses on the credit front are likely to limit incremental
downside to stock's valuation
    ** Three of 17 brokerages rate the stock "buy" or higher, 11
"hold" and three "sell"; their median PT is $45 - LSEG
    ** As of last close, BFH shares were up 24% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))