Keefe says Apple ending Goldman partnership not big surprise

Keefe Bruyette analyst Sanjay Sakhrani says the Wall Street Journal’s report that Apple (AAPL) is “pulling the plug” on its credit card partnership with Goldman Sachs (GS) “isn’t necessarily a big surprise” with investors having speculated about a breakup over the past year. The firm believes there are only so many issuers that could pick up a card portfolio of this size, with JPMorgan (JPM), American Express (AXP) and Capital One Financial (COF) potentially fitting the profile. Apple likely wants a premium partner with scale, given its large existing card portfolio, so whoever takes it has to have excess capital, the analyst tells investors in a research note. Keefe believes Synchrony Financial (SYF) “might not be able to pick up something of this size.”