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Synchrony Financial (SYF): Evaluating Valuation After Extending Mitsubishi Electric Trane HVAC Financing Partnership

Simply Wall St · 1d ago

Synchrony Financial (SYF) has renewed its multi year consumer financing partnership with Mitsubishi Electric Trane HVAC US LLC, extending a decade long relationship that keeps Synchrony firmly embedded in the residential HVAC upgrade cycle.

See our latest analysis for Synchrony Financial.

The renewed Mitsubishi Electric Trane partnership slots neatly into an already strong run for Synchrony, with a roughly 23% year to date share price return and a powerful 5 year total shareholder return of about 179% suggesting momentum is still firmly with the bulls.

If this kind of durable growth story has your attention, it could be a smart moment to explore fast growing stocks with high insider ownership for other under the radar opportunities showing strong commitment from insiders.

Yet with the stock near its analyst price target but still trading at a steep discount to some intrinsic value estimates, investors now face a key question: Is Synchrony still attractive at current levels, or is future growth already fully reflected in the share price?

Most Popular Narrative Narrative: 2.9% Undervalued

With the most followed narrative putting fair value slightly above Synchrony Financial's last close of $80.36, investors are being asked to weigh modest upside against already strong recent gains.

The analysts have a consensus price target of $79.619 for Synchrony Financial based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $100.0, and the most bearish reporting a price target of just $60.0.

Read the complete narrative.

Curious how steady revenue expansion, shifting profit margins, and future earnings multiples all combine into that fair value call? The underlying narrative leans on specific growth paths, calibrated profitability, and disciplined capital return. Want to see exactly which financial levers drive that valuation and how sensitive the outcome is if any of them change?

Result: Fair Value of $82.74 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upbeat outlook still hinges on credit normalization and partner concentration, where worsening delinquencies or a key program loss could quickly compress returns.

Find out about the key risks to this Synchrony Financial narrative.

Build Your Own Synchrony Financial Narrative

If you see the story differently or want to stress test the assumptions with your own inputs, you can easily build a custom view in minutes: Do it your way.

A great starting point for your Synchrony Financial research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.