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Fly News Breaks for January 27, 2020
DFS, SYF
Jan 27, 2020 | 09:29 EDT
Stephens analyst Vincent Caintic upgraded Synchrony Financial (SYF) to Overweight from Equal Weight with an unchanged price target of $40. The analyst is a buyer of the shares on the 10% drop post the company's Q4 results. The market "misunderstood" Synchrony following its earnings, Caintic tells investors in a research note. He believes he market should not paint Synchrony "with the same negative brush" that faced Discover Financial (DFS), namely on negative expenses and loan growth. Synchrony has already won several retail partnership deals and ramp-up expenses are a natural result, contends Caintic. He sees a catalyst in the second half of 2020 when these partnerships generate revenues to drive earnings higher via loan growth and operating leverage