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Fly News Breaks for December 5, 2019
AXP, COF, DFS, SYF
Dec 5, 2019 | 05:24 EDT
Nomura Instinet analyst Bill Carcache downgraded Synchrony Financial (SYF) to Neutral from Buy with a price target of $38, down from $43. The shares are up 60% year-to-date but its GAAP earnings growth is "non-existent" in 2020 and unlikely to resume until 2021 at the earliest, Carcache tells investors in a research note. Further, the risk of incremental late-cycle provision headwinds is a growing concern over the next 12-18 months, adds the analyst. He believes that while investors get CECL is an accounting change that only accelerates the timing of loss recognition, the change will wipe out Synchrony's 2020 earnings growth. Carcache this morning also downgraded Discover (DFS) for a similar rationale. He also raised his price target for Neutral-rated Capital One (COF) to $108 from $87 and for Buy-rated American Express (AXP) to $134 from $130.
News For SYF;DFS;COF;AXP From the Last 2 Days
SYF
Nov 29, 2021 | 06:06 EST
Piper Sandler analyst Kevin Barker initiated coverage of Synchrony Financial with a Neutral rating and $52 price target. The analyst believes Synchrony is well positioned to grow over the next two years and compete directly with of buy now, pay later lenders with its Pay-in-Four product. However, increasing card delinquency rates across the industry combined with an elevated valuation multiple relative to the stock's historical range will likely make it difficult for the stock to outperform, Barker tells investors in a research note.