Morgan Stanley Increases Bread Financial (NYSE:BFH) Price Target to $68.00

Bread Financial (NYSE:BFH) had its target price increased by stock analysts at Morgan Stanley from $62.00 to $68.00 in a report released on Friday,Benzinga reports. The brokerage presently has an “underweight” rating on the stock. Morgan Stanley’s price target indicates a potential downside of 6.00% from the stock’s previous close.

Other equities analysts have also issued research reports about the stock. Zacks Research lowered shares of Bread Financial from a “strong-buy” rating to a “hold” rating in a report on Monday, December 22nd. UBS Group began coverage on shares of Bread Financial in a report on Thursday, January 8th. They issued a “buy” rating and a $92.00 price objective for the company. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Bread Financial in a research report on Monday, December 29th. Barclays upped their target price on shares of Bread Financial from $61.00 to $64.00 and gave the company an “underweight” rating in a research note on Friday. Finally, TD Cowen restated a “hold” rating on shares of Bread Financial in a research report on Friday. Four analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $79.00.

Bread Financial Stock Performance

NYSE:BFH traded down $0.69 during trading on Friday, reaching $72.34. The company’s stock had a trading volume of 330,190 shares, compared to its average volume of 1,003,814. The firm has a market cap of $3.30 billion, a price-to-earnings ratio of 7.36, a price-to-earnings-growth ratio of 0.46 and a beta of 1.27. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.19 and a current ratio of 1.19. Bread Financial has a 12 month low of $38.21 and a 12 month high of $82.03. The firm has a 50 day moving average of $72.95 and a 200-day moving average of $65.43.

Bread Financial (NYSE:BFH) last posted its earnings results on Thursday, January 29th. The company reported $2.07 earnings per share for the quarter, topping the consensus estimate of $0.26 by $1.81. The firm had revenue of $975.00 million during the quarter, compared to the consensus estimate of $954.74 million. Bread Financial had a net margin of 10.08% and a return on equity of 15.97%. During the same quarter last year, the company earned $0.41 earnings per share. Research analysts expect that Bread Financial will post 6.45 EPS for the current fiscal year.

Bread Financial announced that its board has authorized a stock repurchase program on Thursday, October 23rd that allows the company to buyback $200.00 million in shares. This buyback authorization allows the company to reacquire up to 7.1% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Bread Financial

Several hedge funds have recently made changes to their positions in the business. UBS Group AG raised its position in shares of Bread Financial by 100.4% during the 4th quarter. UBS Group AG now owns 716,725 shares of the company’s stock worth $53,059,000 after purchasing an additional 359,088 shares during the period. First Horizon Corp bought a new stake in Bread Financial in the fourth quarter worth approximately $56,000. Moran Wealth Management LLC acquired a new stake in Bread Financial in the 4th quarter worth approximately $2,824,000. Merit Financial Group LLC bought a new position in Bread Financial in the 4th quarter worth approximately $228,000. Finally, CWM LLC increased its holdings in Bread Financial by 26.0% in the 4th quarter. CWM LLC now owns 3,751 shares of the company’s stock valued at $278,000 after buying an additional 773 shares during the period. Institutional investors and hedge funds own 99.52% of the company’s stock.

More Bread Financial News

Here are the key news stories impacting Bread Financial this week:

• Positive Sentiment: Q4 results materially beat expectations: EPS $2.07 vs. consensus ~$0.26 and revenue $975M vs. ~$955M — a major earnings surprise that supports nearer-term earnings power. MarketBeat Earnings Summary
• Positive Sentiment: Analyst support: BTIG reaffirmed a “buy” rating and set a $98 price target (~35% upside vs. current price), which can attract bullish flows. Benzinga
• Positive Sentiment: Dividend announced: Bread declared a quarterly common dividend of $0.23/share (ex-dividend Feb 27, pay Mar 16), implying a ~1.2% yield — supports income-focused holders. GlobeNewswire
• Positive Sentiment: Credit metrics improved/managed risk: December update showed a slight improvement in delinquency (5.8% vs. 5.9% prior) and stable net loss rate (7.4%), which reduces downside risk from credit deterioration. GlobeNewswire Performance Update
• Neutral Sentiment: Guidance: Management outlined low single-digit loan growth for 2026 — signals stable but modest top-line growth, which tempers enthusiasm about near-term revenue expansion. Seeking Alpha
• Neutral Sentiment: Earnings materials and full call available (transcript/slide deck) for deeper review — useful for analysts and investors validating the quality of the beat and forward commentary. Earnings Call Transcript
• Negative Sentiment: Near-term pressure likely: despite the beat, shares pulled back as investors weigh cautious loan-growth guidance, a modest dividend yield (~1.2%), and probable profit-taking after the recent run toward the 12‑month high.

About Bread Financial

Bread Financial, formerly known as Alliance Data Systems, is a Columbus, Ohio–based financial services company that specializes in providing private label credit programs, co-brand credit cards and digital payment solutions for retail partners. The company designs, issues and services proprietary credit products, enabling merchants to offer branded financing options that drive customer loyalty and increase basket sizes at the point of sale. Through its Bread technology platform, Bread Financial delivers installment-based payment options that integrate directly into e-commerce and in-store checkout experiences.

In addition to its core credit offerings, Bread Financial provides analytics, marketing and loyalty services to help merchants better understand consumer behavior and optimize promotional strategies.