Update shared on 13 Nov 2025
Bread Financial Holdings received an updated analyst price target, rising by $6 to $70. Analysts cite stable outlooks and improving credit trends following the company’s recent earnings results.
Analyst Commentary
Following Bread Financial Holdings' recent earnings report and updated price targets, analysts have weighed both growth drivers and lingering risks that may impact the company's performance going forward.
Bullish Takeaways- Bullish analysts point to improving credit trends, which contributed to modest reserve releases and highlight stability in the company's fundamentals.
- Recent quarterly results were solid. The overall outlook is viewed as stable from both a financial execution and risk management perspective.
- The North America consumer finance sector has been upgraded as interest rates move lower and near-term credit performance continues to improve. This reduces downside risks for Bread Financial and peers.
- Valuation adjustments reflect confidence in management’s ability to sustain this momentum, prompting upward revisions to price targets.
- Bearish analysts remain cautious due to persistent macroeconomic and lower-end consumer risks that could affect nonprime and retail lending segments.
- Uncertainties tied to the broader economic environment, including employment trends and consumer spending, may pose future challenges to growth.
- Despite positive credit metrics, there is concern over Bread Financial's exposure to volatility within the nonprime borrower category.
What's in the News
- RBC Capital Markets, Scotia Capital, U.S. Bancorp Investments, J.P. Morgan Securities, Fifth Third Securities, CIBC World Markets, KeyBanc Capital Markets, and Truist Securities have all been added as Co-Lead Underwriters for Bread Financial Holdings' $500 million fixed-income offering. (Company filings)
- Bread Financial Holdings increased its equity buyback plan by $200 million, bringing total authorization to $400 million. (Company announcement)
- The company completed the repurchase of 983,398 shares, representing 2.11% of shares outstanding, for $60 million under the recent buyback program. (Company update)
- Bread Financial Holdings raised its quarterly cash dividend by 10%, now paying $0.23 per share. (Company press release)
- Raymour & Flanigan entered a long-term agreement with Bread Financial to launch a new private label credit program and expand consumer financing options. (Company announcement)
Valuation Changes
- Consensus Analyst Price Target remains steady at $70.20, reflecting no change from previous estimates.
- Discount Rate has decreased slightly, moving from 11.29% to 10.97%.
- Revenue Growth expectations are unchanged, holding at 19.72%.
- Net Profit Margin is virtually flat, moving narrowly from 8.49% to 8.49%.
- Future P/E ratio has dropped marginally from 9.53x to 9.44x.
Disclaimer
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