Synchrony price target raised to $41 from $40 at BofA

BofA raised the firm’s price target on Synchrony to $41 from $40 and keeps a Neutral rating on the shares after the company reported “solid” Q4 EPS driven by lower provisions and RSAs, partially offset by higher operating expenses. While 2024 guidance was “positive,” with most metrics in-line with consensus forecasts and some better than expected, the firm is not surprised by the lack of positive reaction in shares as investors remain concerned about the impact of the forthcoming late fee rule. While execution has been “quite good,” BofA suspects that sentiment is likely to remain muted until there is more clarity on the financial impact from the rule, the analyst added.