Bread Financial double upgraded at Morgan Stanley on ‘solid’ consumer credit

As previously reported, Morgan Stanley analyst Jeffrey Adelson upgraded Bread Financial (BFH) to Overweight from Underweight with a price target of $76, up from $35. The firm adds EPS upside from late fee rule preparatory actions and notes that its base case now assumes the CFPB’s late fee rule does not go through. The 2024 story was “one of stabilization,” as higher delinquencies moderated to the slowest pace in nearly three years. Looking to 2025, support should remain in place, with easing inflation, positive real wage growth, stable-to-lower interest rates, rational lending standards, says the firm, which sees consumer credit “on solid footing in 2025.”