Bread Financial price target lowered to $57 from $61 at BofA

BofA analyst Mihir Bhatia lowered the firm’s price target on Bread Financial to $57 from $61 and keeps a Buy rating on the shares. The firm lowered its Q3 EPS forecast to $1.76, versus consensus at $1.96, as it accounts for reserve build related to the Saks portfolio and a higher for longer reserve rate forecast. Bread said it expects credit losses to follow a seasonal pattern, which implies the Q1 loss rate could approach 9%, versus consensus at 7.9%, noted the analyst, who increased the firm’s loss and reserve forecast for FY25 and lowered its FY25 EPS view to $7.07 from $7.66.