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Synchrony Financial

SYF: XNYS (USA)

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Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$24.00	Ppgyr	Fypzjjg

Synchrony Financial Earnings: Strong Loan Growth but Credit Costs Are a Drag on Results

Apr 24, 2024

No-moat-rated Synchrony Financial reported decent first-quarter earnings that benefited from a one-time gain from the sale of its Pets Best business. Excluding the impact of the Pets Best transaction, revenue increased 16.6% from last year to $3.7 billion. Adjusted earnings per share decreased from $1.81 last year to $1.18. These results translate to an adjusted tangible return on equity of 16.8%, which is modestly below the bank’s historical average. As we incorporate these results, we do not plan to materially alter our $46 fair value estimate for Synchrony.

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