Synovus Financial (SNV) Stock Forecast & Price Target

Synovus Financial Corp is showing a positive outlook due to expected adjusted revenue growth of approximately 6.5%, driven by an increase in net interest income, which rose 3.3% sequentially to $474.7 million, alongside a net interest margin expansion to 3.41%. The company’s capital position remains robust, with a Common Equity Tier 1 (CET1) ratio increasing by 28 basis points to 11.24%, indicating strong financial strength and capacity for growth. Additionally, asset quality has remained stable as total loans increased by 0.5% sequentially to $43.8 billion, particularly in targeted commercial segments, demonstrating effective management and strategic focus.

Synovus Financial Corp's loan growth of 2% LQA fell significantly short of the expected ~7% required to align with its fiscal year 2025 guidance of 4.5%, raising concerns about future growth sustainability. Despite a decrease in non-performing assets (NPAs) and classified loans, the potential impact of economic factors, including GDP and unemployment rates, on the bank’s performance underscores a vulnerability to credit losses. Additionally, challenges related to poor integration, pricing, execution, and regulatory approval delays may further exacerbate earnings volatility and hinder overall performance.