Bread Financial downgraded to Underperform from In Line at Evercore ISI

Evercore ISI downgraded Bread Financial to Underperform from In Line with a price target of $33, up from $29. The analyst expects mounting credit pressure and earnings uncertainty tied to pending late fee regulation to limit incremental upside to the shares post the recent outperformance. While not new news, late free regulation will likely take time to finalize and implement given likely litigation, the analyst tells investors in a research note. Additionally, the outright size of such fees to Bread’s revenue and earnings is likely to “materially mar visibility” while necessitating fee and pricing overall that could take several years to implement and execute, says Evercore.