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

Bread Financial (NYSE:BFH)‘s stock had its “buy” rating reiterated by equities research analysts at BTIG Research in a report released on Friday,Benzinga reports. They currently have a $98.00 target price on the stock. BTIG Research’s target price points to a potential upside of 34.79% from the company’s current price.

Several other research firms have also recently issued reports on BFH. Barclays reissued an “underweight” rating and issued a $64.00 price target on shares of Bread Financial in a research note on Friday. Keefe, Bruyette & Woods upped their price objective on shares of Bread Financial from $82.00 to $92.00 and gave the stock an “outperform” rating in a report on Friday, January 2nd. Royal Bank Of Canada reissued a “sector perform” rating and set a $83.00 target price on shares of Bread Financial in a research note on Monday, January 12th. Zacks Research lowered shares of Bread Financial from a “strong-buy” rating to a “hold” rating in a research note on Monday, December 22nd. Finally, JPMorgan Chase & Co. reiterated an “underweight” rating and set a $72.00 price objective on shares of Bread Financial in a research note on Thursday, December 4th. Four investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company’s stock. 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%

Bread Financial stock opened at $72.71 on Friday. Bread Financial has a 52-week low of $38.21 and a 52-week high of $82.03. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.33. The firm has a market capitalization of $3.32 billion, a price-to-earnings ratio of 7.40, a PEG ratio of 0.46 and a beta of 1.27. The firm has a 50-day moving average price of $72.95 and a two-hundred day moving average price of $65.43.

Bread Financial (NYSE:BFH) last released its quarterly earnings results on Thursday, January 29th. The company reported $2.07 earnings per share for the quarter, beating analysts’ consensus estimates of $0.26 by $1.81. Bread Financial had a return on equity of 15.97% and a net margin of 10.08%.The company had revenue of $975.00 million for the quarter, compared to analysts’ expectations of $954.74 million. During the same quarter in the previous year, the company posted $0.41 earnings per share. Sell-side analysts expect that Bread Financial will post 6.45 earnings per share for the current year.

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

Hedge Funds Weigh In On Bread Financial

A number of hedge funds have recently modified their holdings of BFH. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Bread Financial by 141.2% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company’s stock valued at $31,000 after purchasing an additional 329 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings in Bread Financial by 127.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company’s stock worth $41,000 after buying an additional 398 shares during the period. BOK Financial Private Wealth Inc. purchased a new stake in Bread Financial during the second quarter valued at about $42,000. First Horizon Corp acquired a new position in shares of Bread Financial in the fourth quarter worth about $56,000. Finally, Caitong International Asset Management Co. Ltd increased its position in shares of Bread Financial by 8,300.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 840 shares of the company’s stock worth $47,000 after acquiring an additional 830 shares in the last quarter. 99.52% of the stock is currently owned by institutional investors and hedge funds.

Bread Financial News Roundup

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

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.