Core Viewpoint - Synchrony Financial (NYSE:SYF) is currently considered one of the most undervalued quality stocks available for investment, despite recent adjustments in price targets by various financial institutions [1][2][3]. Group 1: Price Target Adjustments - Truist reduced its price target for Synchrony to $84 from $92 while maintaining a Hold rating, citing an overly optimistic previous outlook on credit following the company's recent earnings report [1]. - RBC Capital adjusted its price target for Synchrony to $85 from $91, maintaining a Sector Perform rating, and described the quarter as encouraging due to year-over-year gains in credit metrics and spending volumes [2]. - TD Cowen lowered its price target for Synchrony to $95 from $100 while keeping a Buy rating, noting a beat on provisions but weaker-than-expected net interest income and operating expenses [3]. Group 2: Company Overview - Synchrony Financial operates as a consumer financial services company in the US, providing credit products such as credit cards, commercial credit products, and consumer installment loans [4].

Core Insights - Synchrony Financial (SYF) is a leading consumer financial services company in the U.S. with a market cap of $27.8 billion, specializing in private-label credit cards, co-branded credit cards, consumer installment loans, and savings products [1] - SYF's market leadership is supported by a vast partner network and significant investments in digital transformation, including mobile app adoption and AI-driven fraud detection [2] Stock Performance - SYF shares are currently trading 1.1% below their 52-week high of $77.41, reached on September 5, with a 24.5% increase over the past three months, outperforming the Dow Jones Industrial Average's 9.4% rise [3] - Year-to-date, SYF shares have surged 17.7%, compared to the Dow's 8.5% gains, and have climbed 56.5% over the past 52 weeks, significantly outpacing the Dow's 11.2% returns [4] Financial Results - In Q2, SYF reported an EPS of $2.50, exceeding Wall Street's estimate of $1.72, with net interest income rising to $4.52 billion, slightly above the forecast of $4.50 billion, driven by higher loan balances and strong consumer spending [5] Competitive Position - In comparison to American Express Company (AXP), which has seen a 15.1% YTD rise and 30.3% gains over the past 52 weeks, SYF has demonstrated stronger performance [6] - Analysts maintain a "Moderate Buy" rating for SYF, with a mean price target of $79.25, indicating a potential upside of 3.6% from current levels [6]