UPDATE: Keefe, Bruyette & Woods Initiates Coverage on Synchrony Financial with Outperform Rating, $31 PT on Unique Investment Opportunity

In a report published Tuesday, Keefe, Bruyette & Woods analyst Sanjay Sakhrani initiated coverage on

with an Outperform rating and $31.00 price target. In the report, Keefe, Bruyette & Woods noted, “We are initiating coverage of SYF with an Outperform rating and a $31 price target. We believe Synchrony Financial (SYF) presents investors with a unique opportunity to gain exposure to a niche vertical within the credit card industry, while also carrying multiple avenues for upside. These include leverage to improving consumer trends, increasing merchant usage of and interest in data-driven credit solutions, and the potential for capital management down the road given robust capital levels and generation. At current levels, we believe shares do not entirely incorporate these aspects, particularly when compared to peer valuations.” Synchrony Financial closed on Monday at $24.84.