Bread Financial (NYSE:BFH) Rating Increased to Strong-Buy at Wall Street Zen

by · The Markets Daily

Bread Financial (NYSE:BFH – Get Free Report) was upgraded by investment analysts at Wall Street Zen from a “buy” rating to a “strong-buy” rating in a research report issued on Friday.

BFH has been the subject of a number of other reports. Morgan Stanley upped their price target on Bread Financial from $57.00 to $62.00 and gave the stock an “underweight” rating in a report on Tuesday. Weiss Ratings reissued a “buy (b-)” rating on shares of Bread Financial in a report on Monday, December 29th. UBS Group began coverage on shares of Bread Financial in a research report on Thursday, January 8th. They issued a “buy” rating and a $92.00 price target on the stock. The Goldman Sachs Group raised shares of Bread Financial from a “sell” rating to a “hold” rating and set a $84.00 price objective for the company in a research report on Tuesday, January 6th. Finally, Royal Bank Of Canada reiterated a “sector perform” rating and issued a $83.00 target price on shares of Bread Financial in a research note on Monday, January 12th. Four analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, Bread Financial presently has a consensus rating of “Hold” and a consensus target price of $78.82.

Read Our Latest Stock Report on BFH

Bread Financial Stock Performance

Bread Financial stock traded down $2.23 on Friday, reaching $68.78. 643,788 shares of the stock were exchanged, compared to its average volume of 841,931. The stock has a market cap of $3.14 billion, a PE ratio of 7.00, a PEG ratio of 0.47 and a beta of 1.27. The firm has a fifty day moving average price of $72.23 and a two-hundred day moving average price of $65.18. Bread Financial has a twelve month low of $38.21 and a twelve month high of $82.03. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.33.

Bread Financial (NYSE:BFH – Get Free Report) last posted its quarterly earnings data on Thursday, October 23rd. The company reported $4.02 EPS for the quarter, topping analysts’ consensus estimates of $2.11 by $1.91. Bread Financial had a return on equity of 15.97% and a net margin of 10.08%.The business had revenue of $1.24 billion for the quarter, compared to analyst estimates of $974.30 million. During the same period in the previous year, the company posted $1.83 earnings per share. The firm’s revenue for the quarter was down 1.2% on a year-over-year basis. Sell-side analysts anticipate that Bread Financial will post 6.45 EPS for the current year.

Bread Financial announced that its board has authorized a stock repurchase plan on Thursday, October 23rd that authorizes the company to repurchase $200.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 7.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s management believes its stock is undervalued.

Institutional Trading of Bread Financial

A number of large investors have recently bought and sold shares of BFH. OMERS ADMINISTRATION Corp acquired a new stake in shares of Bread Financial in the 2nd quarter valued at approximately $1,142,000. Arrowstreet Capital Limited Partnership raised its holdings in Bread Financial by 25.1% in the second quarter. Arrowstreet Capital Limited Partnership now owns 1,233,121 shares of the company’s stock worth $70,436,000 after purchasing an additional 247,437 shares during the period. SG Americas Securities LLC boosted its position in shares of Bread Financial by 748.3% during the third quarter. SG Americas Securities LLC now owns 17,347 shares of the company’s stock worth $967,000 after purchasing an additional 15,302 shares in the last quarter. Norges Bank acquired a new position in shares of Bread Financial in the 2nd quarter valued at $16,599,000. Finally, Jump Financial LLC increased its position in shares of Bread Financial by 132.6% in the 2nd quarter. Jump Financial LLC now owns 198,308 shares of the company’s stock valued at $11,327,000 after buying an additional 113,053 shares in the last quarter. 99.52% of the stock is currently owned by institutional investors.

Bread Financial News Roundup

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

  • Positive Sentiment: Zacks published a preview arguing Bread Financial may beat upcoming earnings, highlighting factors that could drive an upside surprise. Bread Financial Holdings (BFH) Expected to Beat Earnings Estimates: Can the Stock Move Higher?
  • Positive Sentiment: Zacks raised Q3 2026 and Q3 2027 EPS estimates (Q3 2026 to $3.10 from $2.77; Q3 2027 to $3.91 from $3.71), indicating some expectations for stronger performance later in the fiscal year.
  • Neutral Sentiment: Zacks maintained a “Hold” rating on BFH and left the consensus full‑year view in its note context (market consensus referenced at $6.45 current-year EPS), signaling analysts are not yet shifting to a buy/sell stance.
  • Negative Sentiment: Zacks cut several near‑term and annual EPS forecasts: Q4 2026 was reduced sharply (to $1.18 from $1.72), FY2026 to $9.12 from $9.36, FY2027 to $10.56 from $10.69, and Q1 2027 slightly to $1.99 from $2.00. These downgrades increase short‑term earnings uncertainty and are a likely driver of downward pressure on the stock.
  • Negative Sentiment: Additional reductions include Q4 2027 (to $2.29 from $2.61) and modest cuts to early‑quarter forecasts (e.g., Q1 2026 and Q1 2027 adjustments), reinforcing the near‑term weakening theme in Zacks’ model assumptions.

Bread Financial Company Profile

(Get Free Report)

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.

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