BFH Stock Forecast & Price Target

Bread Financial Holdings has demonstrated a resilient financial performance, with net interest income showing a sequential increase of 6.0%, amounting to $1.032 billion, despite a slight year-over-year decline. The company is well-positioned for future growth, supported by its potential to attract more retail partners and expand its Buy Now, Pay Later (BNPL) initiatives, which could lead to accelerating revenue and receivables growth. Additionally, maintaining control over credit costs will be crucial as the credit trends are trending on a stable to improving trajectory, suggesting a favorable path for loan growth into 2026.

Bread Financial Holdings has demonstrated concerning financial trends, with total revenues declining by 4.2% sequentially and 1.1% year-over-year, amounting to $929 million. Additionally, the net interest income has similarly decreased by 3.2% on a sequential basis and 1.3% compared to the previous year, totaling $974 million. Furthermore, the forecast of substantial losses ranging from 7.4% to 7.5% for the upcoming quarter, alongside a negative noninterest income of $45 million, raises significant red flags regarding the company's financial stability.