Synchrony downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Betsy Graseck downgraded Synchrony Financial to Underweight from Equal Weight with a price target of $29, down from $31. The analyst is cautious on the consumer finance sector heading into 2023. The analyst expects higher credit losses, driven by a consumer cash flow squeeze from high inflation, rising unemployment and less excess savings. With 22% of loans out to the bottom 40% of income earners, consumer loan delinquencies and net charge-offs will accelerate over the coming quarters, Graseck tells investors in a research note.