RBC Capital Expects Seasonal Loan Growth, Improved Credit Quality for Synchrony Financial (SYF) Heading into 2026

Synchrony Financial (NYSE:SYF) is one of the best large cap value stocks to buy in 2026. On January 12, RBC Capital analyst Jon Arfstrom raised the firm’s price target on Synchrony to $91 from $76 and kept a Sector Perform rating. In a broad Q4 2025 preview of the consumer finance sector, RBC Capital highlighted steady fundamentals supported by a resilient consumer base and an improving macroeconomic backdrop. The firm expects seasonal trends to drive quarter-over-quarter loan growth, alongside slight improvements in core credit quality.

On the same day, JPMorgan increased its price target for Synchrony to $86 from $75, while maintaining a Neutral rating. This adjustment is part of a broader review of the consumer finance sector ahead of Q4 2025 results. The firm noted that President Trump’s proposal to mandate a 10% cap on credit card interest rates for one year has introduced significant near-term volatility. JPMorgan warned that if this rate reduction were enacted, it would fundamentally alter the credit card industry by sharply decreasing issuer profitability and limiting consumer access to credit.

Despite the potential impact, the firm classified the proposal as a high-severity, low-probability risk that would likely face intense legal challenges. Consequently, JPMorgan continues to recommend a defensive investment strategy within the consumer finance category.

Synchrony Financial (NYSE:SYF), together with its subsidiaries, operates as a consumer financial services company in the US.

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Disclosure: None. This article is originally published at Insider Monkey.