TD Cowen analyst Moshe Orenbuch maintained a Hold rating on Bread Financial Holdings today and set a price target of $68.00.
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Moshe Orenbuch has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Bread Financial Holdings’ recent performance. The company reported a significant earnings beat in the third quarter, with adjusted EPS surpassing both the firm’s and consensus estimates. This was largely driven by a discrete tax benefit and better-than-expected revenue and expense management.
Despite these positive results, there are factors that warrant a cautious outlook. The improvement in credit quality and the subsequent reserve release were notable, but the future trajectory of margins remains uncertain due to potential pressures from falling rates and reduced late fee income. Additionally, while the company has increased its share repurchase authorization, which is a positive signal of returning capital to shareholders, the introduction of preferred stock to the capital structure could imply some strategic shifts. These mixed signals contribute to the Hold rating, suggesting that while the company is performing well, there are uncertainties that prevent a more bullish stance.
According to TipRanks, Orenbuch is a top 100 analyst with an average return of 23.0% and a 69.79% success rate. Orenbuch covers the Financial sector, focusing on stocks such as Bread Financial Holdings, American Express, and SLM.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $64.00 price target.