Will Synchrony Financial’s (SYF) Dealer Card Partnership with Toro Reshape Its Equipment Lending Strategy?

• On November 20, 2025, The Toro Company announced the launch of a new credit card program in partnership with Synchrony Financial, providing digital application tools, special financing options, and advanced underwriting for Toro, Exmark, Spartan, and Z Turf Equipment dealers.
• This offering highlights Synchrony’s focus on supporting commercial dealers with tailored financial technology solutions that simplify credit management and enable flexible purchasing for customers.
• We'll explore how Synchrony's expanded dealer financing capabilities through this collaboration could reinforce its position in commercial equipment lending.

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Synchrony Financial Investment Narrative Recap

To be a shareholder in Synchrony Financial, you need to believe in the company's ability to grow its lending and payments business through expanded digital partnerships and innovation, despite headwinds in consumer credit trends, competition from fintechs, and a heavy reliance on major retailer relationships. The new Toro Company credit card program showcases Synchrony's continued push into commercial dealer financing, but does not materially alter the biggest short term catalyst, the performance of core retail partnerships, or the primary risk of elevated payment rates and muted loan receivables.

The recently announced partnership with Pumpkin Pet Insurance enhances Synchrony's presence in the health and wellness financing space, reflecting its broader efforts to diversify across high-growth verticals and add more recurring loan volume outside traditional retail. While important, the Toro collaboration is most relevant as a sign of incremental expansion rather than a transformative shift in business drivers, reinforcing the ongoing reliance on strong credit performance from both core and emerging partners.

However, even as new digital programs are launched, investors should be aware that Synchrony's risk profile is still shaped by...

Read the full narrative on Synchrony Financial (it's free!)

Synchrony Financial's outlook anticipates $16.5 billion in revenue and $3.3 billion in earnings by 2028. This scenario assumes 21.7% annual revenue growth and a modest $0.1 billion increase in earnings from the current $3.2 billion.

Uncover how Synchrony Financial's forecasts yield a $82.74 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community fair value estimates for Synchrony Financial range widely from US$57.52 to US$146.09 across five unique forecasts. With analysts continuing to flag risks from elevated payment rates and sluggish purchase volumes, you can explore how diverse investor outlooks shape expectations for future growth.

Explore 5 other fair value estimates on Synchrony Financial - why the stock might be worth 26% less than the current price!

Build Your Own Synchrony Financial Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Synchrony Financial research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Synchrony Financial research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Synchrony Financial's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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