BTIG Research Reaffirms “Buy” Rating for Bread Financial (NYSE:BFH)

Bread Financial (NYSE:BFH)‘s stock had its “buy” rating reaffirmed by analysts at BTIG Research in a research report issued to clients and investors on Friday,Benzinga reports. They currently have a $98.00 price objective on the stock. BTIG Research’s target price points to a potential upside of 34.99% from the company’s current price.

BFH has been the subject of several other reports. JPMorgan Chase & Co. reiterated an “underweight” rating and issued a $72.00 target price on shares of Bread Financial in a research report on Thursday, December 4th. The Goldman Sachs Group raised Bread Financial from a “sell” rating to a “hold” rating and set a $84.00 price target for the company in a research note on Tuesday, January 6th. Wall Street Zen upgraded Bread Financial from a “buy” rating to a “strong-buy” rating in a research report on Friday, January 23rd. Royal Bank Of Canada reiterated a “sector perform” rating and set a $83.00 price objective on shares of Bread Financial in a research report on Monday, January 12th. Finally, TD Cowen restated a “hold” rating on shares of Bread Financial in a research report on Thursday, January 8th. Four equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, Bread Financial presently has an average rating of “Hold” and a consensus price target of $79.27.

Bread Financial Stock Down 0.6%

BFH stock opened at $72.60 on Friday. The company’s 50 day moving average is $73.11 and its 200 day moving average is $65.54. The stock has a market cap of $3.31 billion, a price-to-earnings ratio of 6.70, a price-to-earnings-growth ratio of 0.49 and a beta of 1.27. The company has a current ratio of 1.17, a quick ratio of 1.19 and a debt-to-equity ratio of 0.27. Bread Financial has a 1-year low of $38.21 and a 1-year high of $82.03.

Bread Financial (NYSE:BFH) last announced its earnings results on Thursday, January 29th. The company reported $2.07 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $1.67. The business had revenue of $975.00 million during the quarter, compared to analyst estimates of $954.74 million. Bread Financial had a net margin of 11.02% and a return on equity of 17.92%. During the same period in the previous year, the business posted $0.41 earnings per share. Sell-side analysts predict that Bread Financial will post 6.45 EPS for the current fiscal year.

Bread Financial declared that its board has initiated a stock repurchase program on Thursday, October 23rd that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 7.1% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in BFH. Curat Global LLC raised its holdings in Bread Financial by 81,068.5% during the 2nd quarter. Curat Global LLC now owns 450,485 shares of the company’s stock valued at $25,732,000 after buying an additional 449,930 shares during the last quarter. Bank of America Corp DE increased its position in shares of Bread Financial by 241.1% in the second quarter. Bank of America Corp DE now owns 537,656 shares of the company’s stock valued at $30,711,000 after acquiring an additional 380,039 shares during the period. Goldman Sachs Group Inc. increased its position in shares of Bread Financial by 104.8% in the first quarter. Goldman Sachs Group Inc. now owns 736,604 shares of the company’s stock valued at $36,889,000 after acquiring an additional 376,920 shares during the period. UBS Group AG raised its stake in shares of Bread Financial by 100.4% during the fourth quarter. UBS Group AG now owns 716,725 shares of the company’s stock valued at $53,059,000 after acquiring an additional 359,088 shares during the last quarter. Finally, Allianz Asset Management GmbH boosted its holdings in shares of Bread Financial by 44.5% during the third quarter. Allianz Asset Management GmbH now owns 943,659 shares of the company’s stock worth $52,628,000 after purchasing an additional 290,803 shares during the period. Institutional investors own 99.52% of the company’s stock.

Key Stories Impacting Bread Financial

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

• Positive Sentiment: Q4 results materially beat expectations — strong EPS and revenue, with management highlighting improved credit metrics and solid margins, which supports near-term profitability. MarketBeat Earnings Summary
• Positive Sentiment: BTIG reaffirmed a “buy” rating and maintained a $98 price target (significant upside vs. the current share level), offering a bullish analyst counterpoint that may support the stock. TickerReport: BTIG Coverage
• Positive Sentiment: Company commentary and investor materials indicate low single-digit loan growth guidance for 2026 and improving credit metrics (delinquencies down year-over-year), which reduces downside risk from credit cycles. Seeking Alpha: Credit Metrics Update
• Neutral Sentiment: Bread declared a quarterly common dividend of $0.23 per share (payable March 16, ex-dividend Feb 27), providing modest income but not a large yield. GlobeNewswire: Dividend Notice
• Neutral Sentiment: Company performance update published December metrics (net loss rate 7.4%, delinquency ~5.8%) — shows improvement vs. prior year but still-elevated loss levels that investors will monitor. GlobeNewswire: Performance Update
• Neutral Sentiment: Earnings call materials and transcript are available for deeper read — useful for investors assessing forward commentary on losses, loan growth and buyback/dividend plans. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Morgan Stanley raised its price target to $68 but kept an “underweight” stance — the PT implies downside from current levels and signals caution from a major institutional shop, which can weigh on sentiment. Benzinga: Analyst Note

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.