Synchrony Financial (SYF) Stock Forecast & Price Target

Synchrony Financial's stock outlook is bolstered by the consistent growth in margin, which increased by 32 basis points year-over-year to reach 14.78%, indicating improved operational efficiency. Additionally, the company has seen robust performance in new account generation, with a 10% year-over-year growth in the third quarter of 2025, alongside rising frequency and average ticket sizes, which are positive signs of increased consumer engagement. Furthermore, net interest income demonstrated a stable upward trajectory, rising to $4.5 billion, reflecting a 2.6% year-over-year increase, while the overall credit quality indicated by the RSA performance showed a substantial 22.5% increase from the previous year.

The negative outlook on Synchrony Financial's stock is primarily driven by disappointing net revenue guidance for 2025, which raises concerns about potential misses in growth expectations for 2026 amidst a decelerating economic environment. Additionally, increased competitive pressures could lead to a decline in loan and revenue growth, along with a potential loss of retail partners, further exacerbating the company's financial challenges. Compounding these issues, there are expectations of a deterioration in asset quality, which would result in significantly higher credit losses and increased delinquency rates, putting further strain on the company’s financial performance.