Bread Financial upgraded to Outperform from Peer Perform at Wolfe Research

Wolfe Research analyst Bill Carcache upgraded Bread Financial to Outperform from Peer Perform with a $48 price target. he firm believes beneficiaries of healthy labor markets will outperform “casualties of higher-for-longer rates.” The analyst now sees “clear evidence” that delinquency rate formations are rolling over and thinks Bread can mitigate lower late fees. Wolfe expects the company’s return on tangible equity to stabilize at 17% amid benign credit and late fee mitigation.