Synchrony downgraded to Neutral at BofA on consumer concerns

As previously reported, BofA analyst Mihir Bhatia downgraded Synchrony (SYF) to Neutral from Buy. Capital One’s (COF) recent mid-quarter update suggested weakening credit conditions among U.S. consumers and with unemployment likely to rise and rates still rising as well, Bhatia believes pressures will intensify over the next few quarters. Companies covered with the most significant exposure to consumer credit risk and lower-income consumer spending include Synchrony, Discover (DFS), and Affirm (AFRM), the analyst noted.