-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target price to $96 from $79, 7.8x our 2027 EPS view vs. BFH's three-year historical forward P/E average of 6.2x and the peer average of 7.1x. We increase our 2026 EPS estimate to $11.30 from $9.70 and 2027's to $12.30 from $11.62, reflecting the company's significant Q1 earnings beat and the substantial impact of an accelerated share repurchase program. A key win from Q1 was the company's return to loan growth, reversing prior-period declines with a 2% Y/Y increase in end-of-period loans. This inflection was underpinned by robust consumer activity, with credit sales accelerating to 7% growth. Furthermore, credit metrics continued their gradual improvement, with the delinquency rate falling to 5.6% and the net loss rate decreasing to 7.3%. Management prudently maintained its 2026 outlook for low single-digit growth in both average loans and revenue, with net loss rate guidance of 7.2%-7.4%, a move we believe wisely accounts for ongoing macroeconomic uncertainty and geopolitical tensions.