Bread Financial price target raised to $40 from $36 at JPMorgan

JPMorgan raised the firm’s price target on Bread Financial to $40 from $36 and keeps a Neutral rating on the shares. The company’s Q4 results came in well ahead of Street estimates, driven by better than expected net interest margin and lower provision expense, the analyst tells investors in a research note. However, management estimates late fee regulation as proposed could be a “staggering” 25% headwind to Q4 of 2024 revenue growth, net of initial mitigation strategies, says the firm. It says that as proposed, late fee regulation “dramatically and fundamentally changes” the consumer value proposition for private label cards and will stymie Bread Financial growth “for years to come.”