Analyst Moshe Orenbuch of TD Cowen maintained a Hold rating on Bread Financial Holdings (BFH – Research Report), with a price target of $36.00.
Geoff Meacham has given his Hold rating due to a combination of factors affecting Bread Financial Holdings. The company’s loan balance growth has been slightly underwhelming, with a year-over-year decline in January, indicating a slowdown in loan growth which is likely a consequence of more stringent credit policies. This trend is expected to result in growth rates falling short of long-term goals for the year 2024, suggesting a more cautious outlook on the company’s short-term performance.
Furthermore, while delinquency rates have increased, they are consistent with typical seasonal patterns and are anticipated to stabilize and decline moving forward. Net charge-offs have decreased slightly month-over-month and are currently performing better than initially estimated for the first quarter, with expectations of peaking in the first half of 2024 and then improving in the latter half. These mixed indicators—lower than expected loan balance growth, a manageable rise in delinquencies, and better than forecasted net charge-offs—justify the Hold rating, implying that Bread Financial Holdings may not present a compelling opportunity for either buying or selling at this time.
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Bread Financial Holdings (BFH) Company Description:
Alliance Data Systems Corp. engages in the provision of data-driven and transaction-based marketing and customer loyalty solutions. It operates through the following segments: LoyaltyOne, Epsilon and Card Services. The LoyaltyOne segment provides coalition and short-term loyalty programs. The Epsilon segment offers end-to-end, integrated marketing solutions. The Card Services offers risk management solutions, account origination, funding, transaction processing, customer care, collections, and marketing services for the company’s private label and co-brand credit card programs. The company was founded in 1996 and is headquartered in Columbus, Ohio.
Read More on BFH:
- Bread Financial Provides Performance Update for January 2024
- Bread Financial™ to Participate in the Bank of America 2024 Financial Services Conference and KBW’s 2024 Fintech & Payments Conference
- Bread Financial management to meet virtually with Seaport Research
- Bread Financial price target raised to $45 from $40 at Argus
- Bread Financial price target raised to $41 from $38 at Seaport Research
