Bread Financial price target lowered to $58 from $60 at Seaport Research

Seaport Research lowered the firm’s price target on Bread Financial to $58 from $60 and keeps a Buy rating on the shares. The firm expects the year-over-year reserve rate in 2024 will only decline nominally versus its prior forecast for a model decline, the analyst tells investors. Additionally, the firm expects a higher credit loss rate estimate for 2025. On the positive side, the firm notes the ongoing implementation of late fee offsets in response to the CFPB’s proposed late fee rule will begin to gain traction in Q3 and be more visible in Q4.