Synchrony Financial to Acquire Lowe's Commercial Credit Card Portfolio for $0.8B

Synchrony Financial has agreed to acquire Lowe's commercial co-branded credit card portfolio with $0.8 billion of receivables. The bank will become the issuer of the chain's commercial co-branded card portfolio. Synchrony expects to record a reserve and the acquisition is expected to close in the third quarter of 2023.

Synchrony Financial (NYSE:SYF) has agreed to acquire Lowe's (LOW) commercial co-branded credit card portfolio, with approximately $0.8 billion in receivables. The acquisition will see Synchrony become the issuer of Lowe's commercial co-branded card portfolio. The bank anticipates recording a reserve and expects the transaction to close in the third quarter of 2023 [1].

The acquisition follows a series of positive developments for Synchrony Financial. Recently, J. Safra Sarasin Holding AG increased its stake in Synchrony by 109.1%, owning 57,246 shares valued at $3,031,000 following the purchase of an additional 29,870 shares in the first quarter [2]. Additionally, several other institutional investors and hedge funds have bolstered their positions in Synchrony Financial, reflecting a positive sentiment towards the stock.

Analysts have raised their price targets for Synchrony Financial, with JMP Securities setting a new target of $77.00 and Wells Fargo increasing theirs to $80.00. The overall sentiment towards Synchrony Financial remains positive, with analysts giving the stock a "Moderate Buy" rating and a consensus price target of $74.05 [2].

Synchrony Financial's latest earnings results showed $2.50 EPS for the quarter, topping the consensus estimate of $1.72 by $0.78. The company also announced a quarterly dividend of $0.30, set to be paid on August 15th, with an annualized yield of 1.8% and a payout ratio of 14.56% [2].

The acquisition of Lowe's commercial co-branded credit card portfolio is expected to enhance Synchrony Financial's revenue and profitability, as it expands its portfolio of credit products. The bank's strong financial performance and positive analyst sentiment suggest that this acquisition could be a strategic move for the company.

References:
[1] https://seekingalpha.com/news/4478217-synchrony-financial-to-buy-lowes-commercial-credit-card-portfolio
[2] https://www.marketbeat.com/instant-alerts/filing-j-safra-sarasin-holding-ag-boosts-stake-in-synchrony-financial-nysesyf-2025-08-03/