BTIG Analyst Vincent Caintic Maintains Buy Rating on Synchrony Financial Amid Strategic Acquisition and Positive Financial Outlook

BTIG analyst Vincent Caintic maintains a Buy rating on Synchrony Financial, citing the company's strategic acquisition of Lowe's $0.8 billion commercial co-branded credit card portfolio and positive financial outlook. The acquisition is expected to enhance the company's performance, with a 18-cent lift in earnings per share in 2026. Caintic values Synchrony Financial at 2.3 times the fourth quarter 2026 tangible book value, aligning with a return on tangible common equity of 21%.

Synchrony Financial has announced a significant acquisition that could enhance its financial performance and expand its offerings. The Stamford-based company has struck a deal to acquire Lowe's Commercial Co-branded Credit Card Portfolio, valued at approximately $800 million in loan receivables. The transaction is expected to be completed in the first half of 2026, subject to customary closing conditions [1].

The acquisition involves about $800 million in loan receivables, which represents the outstanding balances that cardholders owe on their credit accounts. Synchrony Financial expects to record a reserve of up to $50 million in the third quarter of 2025 in connection with the transaction [2]. The company anticipates launching the new credit card program in the first half of 2026.

BTIG analyst Vincent Caintic maintains a Buy rating on Synchrony Financial, citing the strategic acquisition and the company's positive financial outlook. Caintic expects the acquisition to enhance Synchrony's performance, with a projected 18-cent lift in earnings per share in 2026. He values Synchrony Financial at 2.3 times the fourth quarter 2026 tangible book value, aligning with a return on tangible common equity of 21% [3].

This acquisition is part of Synchrony's strategy to expand its portfolio and enhance its offerings in the commercial co-branded credit card space. In early June, Synchrony partnered with OnePay, a financial technology platform majority-owned by Walmart, to develop a private-label Walmart credit card program [1].

References:
[1] https://www.morningstar.com/news/dow-jones/202508054649/synchrony-strikes-deal-to-buy-lowes-commercial-card-portfolio
[2] https://www.ainvest.com/news/synchrony-financial-acquires-lowe-commercial-branded-credit-card-portfolio-2508/
[3] https://www.tipranks.com/stocks/afrm/forecast