Deutsche Bank Starts Synchrony Financial (SYF) at Hold

Deutsche Bank initiated coverage on Synchrony Financial (NYSE: SYF) with a Hold rating and a price target of $27.00.

Analyst David Ho said, "Synchrony Financial (SYF) represents an attractive opportunity to gain exposure to the US consumer and retail recovery given its above-average risk-adjusted margins. While the valuation seems attractive, we believe the risk/reward is less compelling as we expect higher expenses and funding costs to reduce ROEs and EPS growth through 2016; and there is regulatory uncertainty related to its separation from GE (which owns 85% of SYF). SYF's dependence on large retail partnerships may also lead to ongoing concerns over potential non-renewals/competition. HOLD."

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

Shares of Synchrony Financial closed at $24.84 yesterday.

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