Synchrony Financial (SYF)

Banks

Following the release of 1Q15 earnings, we maintain our "BUY" recommendation on SYF Senior Unsecured Notes and our "Market Perform" recommendation on SYF Common Stock. 1Q15 earnings and capital build were solid, while bond spreads remain attractive. Meanwhile, having reached our $30.00 price target, the Common Stock is fully valued, in our view.