Synchrony price target raised by $2 at Morgan Stanley, here’s why

Morgan Stanley raised the firm’s price target on Synchrony to $29 from $27 and keeps an Underweight rating on the shares. The firm’s analysts have upgraded the firm’s North American Consumer Finance industry view to In-Line from Cautious, citing slowing inflation, an end to Fed hikes that will ease pressure on low/mid-income consumers and consumer credit being set to move past peak deterioration. The firm, which expects delinquency deterioration to slow, adds that “consensus has come our way and is no longer too optimistic.” However, the firm adds that “it’s too early to buy the group” as bear case risks remain in place.