Baird Downgrades Synchrony Financial (SYF) to Neutral

Baird analyst David George downgraded Synchrony Financial (NYSE: SYF) from Outperform to Neutral with a price target of $82.00.

The analyst comments: "Downgrading SYF to Neutral - high quality bank, but lower end consumer exposure makes it tough to chase after this move. While we still see some modest upside in the group to the extent credit trends continue to outperform expectations, the upside from a benign credit environment vs. the downside if US economic trends continue to soften is now more balanced in our opinion. While we appreciate SYF's ability to withstand credit losses (ALL at ~10.35% in Q325; CET1 at ~13.7%), their subprime credit card exposure (FICO <650) of ~27% of card loans should lead to higher loss content relative to peers if US economic trends worsen."

For an analyst ratings summary and ratings history on Synchrony Financial click here. For more ratings news on Synchrony Financial click here.

Shares of Synchrony Financial closed at $80.40 yesterday.

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