Synchrony, Bread Financial gain after BofA upgrades to 'buy'

Bread Financial Holdings

09/08/2024 15:28

** Shares of Synchrony Financial  SYF.N  rise ~1% to $46.19,
while Bread Financial  BFH.N  jumps ~8.6% to $51.61
    ** Bank of America Global Research raises both consumer
lenders' rating to 'buy' from 'neutral' citing improving credit
trends 
    ** "Our analysis suggests the current credit cycle has
peaked and losses will be lower prospectively," BofA analyst
Mihir Bhatia writes in a client note 
    ** BofA adds it expects better credit and less headwinds
from late fee to drive EPS upside  
    ** Brokerage says delinquencies peaked in Q1 and have
trended down since, which should lead to lower loss rates
through year-end
    ** BFH up ~57% YTD, including session moves; SYF up ~21%
over the same period 

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com))