Bread Financial (NYSE:BFH) Earns Buy Rating from BTIG Research

Bread Financial (NYSE:BFH)‘s stock had its “buy” rating reaffirmed by analysts at BTIG Research in a research note issued on Friday,Benzinga reports. They currently have a $98.00 price objective on the stock. BTIG Research’s price objective indicates a potential upside of 34.79% from the company’s previous close.

A number of other analysts have also recently issued reports on the company. TD Cowen reissued a “hold” rating on shares of Bread Financial in a research report on Thursday, January 8th. Zacks Research lowered Bread Financial from a “strong-buy” rating to a “hold” rating in a report on Monday, December 22nd. Weiss Ratings restated a “buy (b-)” rating on shares of Bread Financial in a report on Monday, December 29th. Evercore ISI set a $81.00 target price on shares of Bread Financial in a research note on Tuesday, January 6th. Finally, Morgan Stanley boosted their target price on shares of Bread Financial from $57.00 to $62.00 and gave the stock an “underweight” rating in a research report on Tuesday, January 20th. 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. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $78.45.

Bread Financial Trading Up 6.6%

NYSE:BFH opened at $72.71 on Friday. The stock’s 50-day moving average is $72.95 and its two-hundred day moving average is $65.43. Bread Financial has a fifty-two week low of $38.21 and a fifty-two week high of $82.03. The stock has a market cap of $3.32 billion, a PE ratio of 7.40, 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 current ratio of 1.19 and a quick ratio of 1.19.

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

Bread Financial declared that its Board of Directors has approved a stock repurchase plan on Thursday, October 23rd that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 7.1% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Institutional Trading of Bread Financial

Large investors have recently modified their holdings of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Bread Financial by 4.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 29,589 shares of the company’s stock worth $1,482,000 after acquiring an additional 1,286 shares during the period. Millennium Management LLC boosted its holdings in Bread Financial by 46.5% during the first quarter. Millennium Management LLC now owns 345,902 shares of the company’s stock valued at $17,323,000 after acquiring an additional 109,864 shares during the period. Goldman Sachs Group Inc. grew 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 purchasing an additional 376,920 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Bread Financial by 3.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 157,833 shares of the company’s stock worth $7,904,000 after purchasing an additional 4,624 shares during the period. Finally, Strs Ohio acquired a new position in shares of Bread Financial during the 1st quarter worth about $65,000. 99.52% of the stock is owned by institutional investors.

Trending Headlines about Bread Financial

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

• Positive Sentiment: Q4 earnings materially beat expectations — EPS $2.07 vs. ~$0.26 consensus and revenue of $975M topping estimates; management provided supporting materials (press release and slide deck). Bread Financial Reports Fourth Quarter and Full-Year 2025 Results
• Positive Sentiment: Credit trends are improving: delinquency rate edged down to 5.8% and management reported a stabilized net loss rate — signs that underwriting and portfolio management are working. Bread Financial Provides Performance Update for December 2025
• Positive Sentiment: Board declared a quarterly common dividend of $0.23/share (ex-div 2/27), providing modest income support (annualized yield ~1.3%). Bread Financial Declares Dividends on Preferred and Common Stock
• Neutral Sentiment: Management set a conservative outlook for 2026: low single-digit loan growth as the company prioritizes credit quality over rapid origination — stabilizing but slower top-line expansion. Bread Financial outlines low single-digit loan growth for 2026 as credit metrics improve
• Neutral Sentiment: Full earnings materials and call transcript are available for deeper detail (useful for modeling reserve cadence, fee income, and margin assumptions). Q4 2025 Earnings Call Transcript
• Negative Sentiment: Credit losses remain elevated in absolute terms (net loss rate ~7.4%) and average loan balances declined year-over-year — risks that could cap valuation multiple until sustained improvement is confirmed. Bread Financial Q4 Earnings: Key Metrics Versus Estimates

Bread Financial Company Profile

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.