Synchrony price target raised to $43 from $41 at BofA

BofA analyst Mihir Bhatia raised the firm’s price target on Synchrony to $43 from $41 and keeps a Neutral rating on the shares. Synchrony now expects FY24 EPS excluding the late fee rule impact and Pets’ Best gain to be $5.70-$6.00 and expects a (15c)-(25c) headwind to 2024 EPS from the CFPB’s late fee rule being finalized, the analyst noted. In the near-term, there will be top-line and EPS pressure and the firm reiterates its Neutral rating as it views the risk/reward as balanced. The firm adjusted FY24 and FY25 EPS forecasts to reflect updated commentary and guidance and tweaked its PE multiple higher given some additional clarity on the late fee rule and Synchrony’s mitigation path.