Synchrony downgraded to Neutral from Buy at Compass Point yesterday

As previously reported yesterday, Compass Point downgraded Synchrony (SYF) to Neutral from Buy with a price target of $70, down from $77. The stock is up about 82% since the start of 2023 on the back of skirting a recession, the Trump trade, and the prospect of improving credit metrics, notes the analyst, who suggests investors “should take profits.” About 50% of the upside from late fee mitigants is included in FY25 guidance and there is a chance a portion of Synchrony’s original late fee income mitigation efforts don’t materialize due to partners not making changes as the rule doesn’t materialize, added the analyst, who sees better opportunity elsewhere in his coverage.