Aug. 25 at 10:21 PM
Wolfe Research upgraded Bread Financial Holdings to Outperform from Peerperform and set a
$130 price target, implying roughly 24% upside from the previous close. The firm cited improving credit quality, lower late-fee pressure and expectations for near-term results to beat estimates, supported by faster loan growth and disciplined expense expansion.
The target is based on 1.6x the company’s estimated 2027 tangible book value per share, slightly below its current multiple of about 1.8x, suggesting the bullish case relies more on earnings growth than valuation expansion. The upgrade adds to a series of positive analyst actions in recent months, reflecting improving Wall Street sentiment.
Bread Financial reported Q2 2026 diluted EPS of
$3.55, well above the
$2.70 consensus estimate, while revenue of
$993 million also exceeded expectations. Credit metrics continued to improve, with delinquency and net charge-off trends declining year over year.
$BFH