Bread Financial Holdings (BFH) gained 2.8% in early trade, touching $108.14 per share. The move comes as the broader U.S. equity markets posted modest gains, with the S&P 500 up 0.2%, the Dow Jones 0.1% and the Nasdaq 0.5%.
Wolfe Research upgraded Bread Financial from a neutral-equivalent stance to Outperform and issued a new price target of $130. The target reflects a valuation of 1.6 times the company’s estimated 2027 tangible book value per share, a slight discount to the current multiple of roughly 1.8x, and implies about 24% upside from the prior close.
In the second quarter of 2026, Bread Financial reported diluted earnings per share of $3.55, well above the consensus estimate of $2.70, and revenue of $993 million, also beating expectations. The report highlighted lower delinquencies and net charge‑offs year over year, indicating a more constructive credit outlook.
Wolfe cited an improving credit quality outlook, reduced late‑fee risk, accelerating loan growth and disciplined expense expansion as key drivers behind the upgrade. The stock’s 52‑week range is $53.83 to $114.53.
