Bread Financial Holdings (BFH) Reiterated at Market Perform by Citizens on 4Q25 Results

Citizens analyst David Scharf reiterated a Market Perform rating on Bread Financial Holdings (NYSE: BFH).

The analyst commented, "We maintain our Market Perform rating on Bread Financial. The company reported 4Q25 results before market open last Thursday, with shares rising ~6% since then given the positive credit outlook and management's guide for a return to loan growth in 2026. Similar to what we have heard from other lenders this earnings season, consumer health remains stable despite market noise, and the company is forecasting both better-than-expected (versus the Street's previous outlook) credit performance in 2026 and a return to portfolio growth. The company also made further progress in rightsizing its debt stack and returned significant capital to shareholders during both the quarter and the full year. Despite the healthy credit trends, positive outlook, and improving balance sheet, we see the shares as fairly valued at ~7x our 2026 EPS estimate and ~1.3x YE2025 tangible book value given continued competitive pressures (particularly from BNPL offerings) and the longer-term NIM uncertainty associated with the ongoing mix shift to cobranded cards."

For an analyst ratings summary and ratings history on Bread Financial Holdings click here. For more ratings news on Bread Financial Holdings click here.

Shares of Bread Financial Holdings closed at $72.54 yesterday.

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