Bread Financial Holdings Inc. shares fell 10.80% as it crossed below the 5-day SMA, reflecting broader challenges in the financial sector.
The decline is attributed to a proposal by President Trump to cap credit card interest rates at 10%, which has raised concerns among investors about the potential impact on profitability for financial institutions. This proposal has led to significant declines in major financial stocks, with Bread Financial experiencing an 8.3% drop, indicating a sector-wide reaction to the proposed policy changes.
As the market reacts to these developments, investors are likely to remain cautious, closely monitoring upcoming earnings reports and any further news regarding regulatory changes that could affect the financial landscape.
Wall Street analysts forecast BFH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BFH is 81.08 USD with a low forecast of 57.00 USD and a high forecast of 98.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
Wall Street analysts forecast BFH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BFH is 81.08 USD with a low forecast of 57.00 USD and a high forecast of 98.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Buy
5 Hold
3 Sell
Hold
Current: 68.200
Low
57.00
Averages
81.08
High
98.00
Current: 68.200
Low
57.00
Averages
81.08
High
98.00
Morgan Stanley
Underweight
maintain
$57 -> $62
2026-01-20
Reason
Morgan Stanley
Price Target
$57 -> $62
AI Analysis
2026-01-20
maintain
Underweight
Reason
Morgan Stanley raised the firm's price target on Bread Financial to $62 from $57 and keeps an Underweight rating on the shares as part of the firm's Q4 preview note on its consumer finance coverage.
TD Cowen
Hold
maintain
$68 -> $85
2026-01-08
Reason
TD Cowen
Price Target
$68 -> $85
2026-01-08
maintain
Hold
Reason
TD Cowen raised the firm's price target on Bread Financial to $85 from $68 and keeps a Hold rating on the shares. The firm adjusted targets in the specialty finance group as part of its 2026 outlook.
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TD Cowen
Moshe Orenbuch
Hold
maintain
$68 -> $85
2026-01-08
Reason
TD Cowen
Moshe Orenbuch
Price Target
$68 -> $85
2026-01-08
maintain
Hold
Reason
TD Cowen analyst Moshe Orenbuch raised the firm's price target on Bread Financial to $85 from $68 and keeps a Hold rating on the shares. The firm updated its price target to reflect is outlook in the Specialty Finance sector affected by macro economic factors and secualr growth in various areas of credit card, auto lending, student lending, non-prime lending, buy-now-pay-later, and lease to own.
UBS
Buy
initiated
$92
2026-01-08
Reason
UBS
Price Target
$92
2026-01-08
initiated
Buy
Reason
UBS initiated coverage of Bread Financial with a Buy rating and $92 price target. The franchise appears poised to enter the next phase of its turnaround, supported by a significantly strengthened balance sheet, lower leverage, and improved capital levels, the analyst tells investors in a research note. Despite a sharp rebound in the stock, further upside remains as credit losses improve, revenue growth inflects, and valuation multiples continue to expand.
About BFH
Bread Financial Holdings, Inc. is a tech-forward financial services company, which is engaged in providing simple, personalized payment, lending, and saving solutions. The Company's product offerings consist of private label and co-brand credit card programs with retailers and other brand partners; direct-to-consumer (DTC) credit cards; Bread Pay products; and Bread Savings products. Its payment solutions, including Bread Financial general purpose credit cards and savings products. Its private label credit cards are partner-branded credit cards used by consumers for the purchase of goods and services from that partner. Bread Pay is its payment technology solution for pay-over-time products. The Company's products are supported by various services and capabilities, including risk management, account origination and funding services; credit card and other loan processing and servicing; fraud prevention; marketing, and data and analytics; and digital and mobile capabilities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
