Analyst Mihir Bhatia of Bank of America Securities reiterated a Buy rating on Bread Financial Holdings, boosting the price target to $75.00.
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Mihir Bhatia has given his Buy rating due to a combination of factors including Bread Financial Holdings’ strong third-quarter performance and strategic financial decisions. The company reported solid quarterly results, highlighted by an increase in the quarterly dividend and an upsizing of the share buyback program, indicating confidence in its financial health and future prospects.
Bhatia also noted that Bread Financial Holdings has maintained a positive outlook for 2025, with expectations for net charge-offs to be at the lower end of the guided range. Additionally, the company’s credit performance exceeded expectations, and there was a notable increase in credit sales, particularly in the apparel and beauty sectors. Despite some moderation in sales growth towards the end of the quarter, the overall financial performance and strategic initiatives support the Buy rating.
Bhatia covers the Financial sector, focusing on stocks such as Synchrony Financial, American Express, and Rocket Companies. According to TipRanks, Bhatia has an average return of 7.4% and a 61.76% success rate on recommended stocks.