Nomura Securities Reiterates Buy on Synchrony Financial (SYF) Following Better-Than-Expected Payout
Nomura Securities reiterated a Buy rating and $34.00 price target on Synchrony Financial (NYSE: SYF) following the approval of a better-than-expected payout of ~60%. Expectations for the payout were ~50%.
Analyst Bill Carcache commented, "SYF revealed its capital plan for the 2016 CCAR period (3Q16-2Q17) after the close on July 7, 2016, surprising positively with a payout of ~60% (better than our / consensus expectations of ~50%). SYF announced that it has received Board approval to repurchase shares up to $925mn over the four-quarter period ending June 30, 2017 (above our estimate of $640mn), and is initiating a quarterly dividend of $0.13 per share (payable on August 25, 2016), which translates into a dividend yield of ~2% (roughly in line with regional bank and card issuer peers)."
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Shares of Synchrony Financial closed at $26.02 yesterday.