BFH Price Prediction Next Week
Technical Analysis
Based on recent market data, Bread Financial Holdings (BFH) shows significant technical weakness, having entered oversold territory with an RSI reading of 28.1. This oversold condition typically presents potential buying opportunities, but several factors suggest caution is warranted.
Price Analysis
- Current price: $51.33 (recent low)
- Key support level: $50-51 range
- Key resistance: $54.00 (recent dividend calculation price point)
Market Sentiment & News Impact
- Recent consumer finance sector analysis shows BFH has significant exposure to tax refund seasonality
- Credit card metrics for January 2025 show mixed signals:
- Positive: BFH showed significant improvement in delinquency and charge-off rates
- Negative: Loan growth declined -2% year-over-year, underperforming peers
Next Week Price Prediction
Based on technical indicators and recent news:
Scenario Analysis:
- Bullish Case (30% probability): $55-56
- Catalyst: Better-than-expected tax refund impact on consumer spending
- Technical bounce from oversold conditions
- Base Case (50% probability): $51-53
- Consolidation near current levels
- Limited upside due to broader sector headwinds
- Bearish Case (20% probability): $48-50
- Further deterioration in consumer credit metrics
- Technical breakdown below support
Recommendation: SELL
The combination of weak loan growth, sector headwinds, and technical weakness suggests avoiding BFH despite oversold conditions. While the stock offers a 1.56% dividend yield, the risk-reward ratio appears unfavorable for the next trading week. Investors should wait for clear signs of technical improvement and better sector fundamentals before establishing new positions.
BFH Similar Chart Price Prediction
The price of BFH is predicted to go up 4.2%, based on the high correlation periods with ARCB. The similarity of these two price pattern on the periods is 97.47%.
BFH
ARCB
Up: 4.2%Similarity: 97.47%
BFH Revenue Forecast
BFH EPS Forecast
BFH FAQs
What is BFH revenue forecast for next quarter？
What is BFH eps forecast for next quarter？
BFH VS S&P500
Bread Financial's restructuring efforts have been highly successful in reducing the company's costs. This has allowed it to adjust effectively for its smaller size and retain profitability.
Many of Bread Financial's partners rely on it for data collection and loyalty programs. Switching costs protect these partnerships from competitive threats.
The company's credit card business is well capitalized, which will help protect Bread if credit results deteriorate.
BFH Analyst's Forecast
Karl Shepard
RBC Capital
Hold
2025-01-31
Price Target
$62 → $68
Upside
+8.02%
RBC Capital analyst Jon Arfstrom raised the firm's price target on Bread Financial to $68 from $62 and keeps a Sector Perform rating on the shares after its Q4 results. The company's fundamentals were stable and seasonally higher loan growth drove quarterly trends, while its 2025 outlook was consistent with the firm's prior expectation for directional improvement, the analyst tells investors in a research note. Bread Financial looks to be on track to return to stronger growth over time and potentially later in 2025, the firm added.
Terry Ma
Barclays
Sell
2025-01-31
Price Target
$51 → $53
Downside
-15.81%
David Rochester
Compass Point
Strong Buy
2025-01-21
Price Target
$75 → $87
Upside
+37.05%
